My question to you is there any legal action that can be brought against the bank for calling in the loan early
You'll have to read the loan contract to see what constitutes default and loan accelleration.
I imagine that the bank took the insurance money because it was listed on the policy as under the loss payable provision. Again, you would have to read the loan contract to see if the bank had that option when the insurance was due to property loss.
preventing us from reopening and having the opportunity to keep paying on the loan.
The bank didn't "prevent" anything. Sorry, but your wife fell on hard times, went out of business and defaulted on the loans. That's not the bank's fault.
It seems to me that the bank was not willing to work with us because the loan was backed by the SBA.
That has nothing to do with anything.
With all that has happened my Wife’s health has deteriorated to the point to where she is being treated by a physiologist for depression and PTSD from when she was robbed and is unable to work.
Also not the bank's fault.
If you and your wife don't understand the loan contract please take it to a lawyer and review your options.
I have read that SBA loans might be dischargeable in bankruptcy. Think about that.