{"ok":true,"canonical_url":"https://dealroom.so/glossary/absolute-assignment","api_url":"https://dealroom.so/api/public/glossary/absolute-assignment","data_freshness":{"sba_records_through":"2026-05-31","fdic_records_through":"2026-03-31","dealroom_last_updated":"2026-06-15","timezone":"America/Chicago"},"source_summary":["Public SBA 7(a) loan records","FDIC institution data","DealRoom lender and franchise enrichment"],"term":{"slug":"absolute-assignment","term":"Absolute Assignment","group":"Doing the deal","definition":"This is a complete transfer of rights or ownership of an asset from one party to another. For SBA loans, it typically applies to life insurance policies.","what_it_means":"If you, as a key principal, are required to have life insurance for the loan, the lender will likely require an absolute assignment of the policy. This means they become the owner and beneficiary, ensuring the loan is paid off if you die. You'll complete an Assignment of Policy form.","url":"https://dealroom.so/glossary/absolute-assignment","official_sources":[{"slug":"sop-50-10","title":"SOP 50 10 — Lender and Development Company Loan Programs","official_url":"https://www.sba.gov/document/sop-50-10-lender-development-company-loan-programs","official_label":"View on SBA.gov","authority_tier":2,"publisher":"U.S. Small Business Administration","source_guide_url":"https://dealroom.so/sba-7a/sources/sop-50-10"}],"related":[{"slug":"key-principal","term":"Key principal","url":"https://dealroom.so/glossary/key-principal"},{"slug":"life-insurance","term":"Life insurance","url":"https://dealroom.so/glossary/life-insurance"},{"slug":"assignment-of-policy-form","term":"Assignment of Policy Form","url":"https://dealroom.so/glossary/assignment-of-policy-form"},{"slug":"beneficiary","term":"Beneficiary","url":"https://dealroom.so/glossary/beneficiary"}],"related_questions":[{"question":"What is the absolute maximum dollar amount available for an SBA 7(a) loan?","url":"https://dealroom.so/sba-loans/basics/what-is-the-absolute-maximum-dollar-amount-available-for-an-sba-7-a-loan"},{"question":"What is the absolute highest amount an SBA 7(a) loan can be for?","url":"https://dealroom.so/sba-loans/basics/what-is-the-absolute-highest-amount-an-sba-7-a-loan-can-be-for"},{"question":"What is the absolute minimum cash injection required for an SBA 7(a) business acquisition?","url":"https://dealroom.so/sba-7a/questions/what-is-the-absolute-minimum-cash-injection-required-for-an-sba-7-a-business-acquisition"},{"question":"What is the absolute highest amount I can borrow with an SBA 7(a) loan?","url":"https://dealroom.so/sba-loans/basics/what-is-the-absolute-highest-amount-i-can-borrow-with-an-sba-7-a-loan"},{"question":"How does a collateral assignment of life insurance protect a lender?","url":"https://dealroom.so/sba-7a/questions/how-does-a-collateral-assignment-of-life-insurance-protect-a-lender"},{"question":"What is the difference between collateral assignment and naming a lender beneficiary?","url":"https://dealroom.so/sba-7a/questions/what-is-the-difference-between-collateral-assignment-and-naming-a-lender-beneficiary"}]},"caveats":["Definitions represent DealRoom's plain-English interpretation for buyers; verify regulatory terms against the official SBA and eCFR sources listed.","Not legal, tax, or financial advice, and not an SBA eligibility determination."],"citation":{"label":"DealRoom.so Glossary — Absolute Assignment","url":"https://dealroom.so/glossary/absolute-assignment","source_type":"DealRoom Data"}}