Alice and Bob each took a $2mm SBA loan to buy identical businesses. However, their assets differ:
Alice’s assets: $500k in home equity $1.5mm stock portfolio

Bob’s assets: $500k in home equity

Both businesses became obsolete overnight due to a new ChatGPT3 feature. They both default.

Questions: 1) Do Alice and Bob lose all their assets? 2) How could Alice protect her $1.5mm in stocks?

For example, assume Alice is happily married to Zach. Wouldn’t it make sense to legally divorce Zach before applying for the loan? The divorce agreement could have Zach keep the $1.5mm in stock and have Alice keep the $500k in home equity. Then Alice could apply for the SBA loan using only her home equity as collateral.

What other options does Alice have to protect her assets?