{"ok":true,"canonical_url":"https://dealroom.so/glossary/beneficiaries","api_url":"https://dealroom.so/api/public/glossary/beneficiaries","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":"beneficiaries","term":"Beneficiaries","group":"People and paperwork","definition":"These are the individuals or entities designated to receive benefits, often from a life insurance policy. For an SBA loan, the lender is typically a beneficiary on your key-man life insurance.","what_it_means":"The SBA often requires key-man life insurance on you, the buyer, to protect the loan in case of your death. The lender will be named as the primary beneficiary up to the loan balance, ensuring they get paid if something happens to you. This is a standard closing condition, documented with an Assignment of Policy form.","url":"https://dealroom.so/glossary/beneficiaries","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":"life-insurance","term":"Life insurance","url":"https://dealroom.so/glossary/life-insurance"},{"slug":"key-man-insurance","term":"Key man insurance","url":"https://dealroom.so/glossary/key-man-insurance"},{"slug":"assignment-of-policy-form","term":"Assignment of Policy Form","url":"https://dealroom.so/glossary/assignment-of-policy-form"}],"related_questions":[]},"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 — Beneficiaries","url":"https://dealroom.so/glossary/beneficiaries","source_type":"DealRoom Data"}}