What about KY law regarding garnishment. Exactly, the lender and business real-estate is in KY. The borrower is in IL.
A: Sorry, for some reason I thought that you were in PA. IL law is what matters, and IL law permits wage garnishment.
Also for example, if we have three real-estates putting on the "unconditional" guarantee" of SBA loan, can we sell the houses given the SBA loan is not being default?
Can the bank provent us from selling our own houses ?
Last time, when we try to re-finance our house, the SBA lender required we cannot finance out more than the current debt. Is it a legal requirement?
A: SBA does not want you to incur more debt, until the business loan is paid off. This has nothing to do with your selling properties that you currently own, because you wouldn't be incurring any additional debt.
What if I need money to fund my children's university education in this case or I have emergency usage due to sickness of family member.
A: Unfortunately, these things are not legal arguments to avoid paying a debt. The loan takes precedence.
Again, if the SBA loan is being paid according to payment plan(i.e. $2000/month), can the lender freeze my asset which is under the "unconditonal guarantee"? Do we have to pay off the SBA loan before allowing to see our own house?
A: If the loan is not in default, then the SBA can't do anything. The SBA and bank are not damaged by your acts or omissions unless you are in default on the loan. If you maintain the payments according to the loan agreement, then there is nothing for you to worry about at all.
Hope this helps.