{"ok":true,"canonical_url":"https://dealroom.so/glossary/beneficiary","api_url":"https://dealroom.so/api/public/glossary/beneficiary","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":"beneficiary","term":"Beneficiary","group":"People and paperwork","definition":"The person or entity designated to receive assets or benefits, such as the payout from a life insurance policy.","what_it_means":"In an SBA loan context, the lender is often named as the beneficiary on a life insurance policy for the borrower, especially if \"key man\" insurance is required. This ensures that if something happens to you, the loan can still be repaid. You'll also designate beneficiaries for other personal assets.","url":"https://dealroom.so/glossary/beneficiary","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":"life-insurance-assignment","term":"Life insurance assignment","url":"https://dealroom.so/glossary/life-insurance-assignment"},{"slug":"key-man-insurance","term":"Key man insurance","url":"https://dealroom.so/glossary/key-man-insurance"}],"related_questions":[{"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"},{"question":"Who owns and is the beneficiary of a key-person life insurance policy?","url":"https://dealroom.so/sba-7a/questions/who-owns-and-is-the-beneficiary-of-a-key-person-life-insurance-policy"},{"question":"Who must be named as the beneficiary for life insurance on a 7(a) loan?","url":"https://dealroom.so/for-lenders/questions/who-must-be-named-as-the-beneficiary-for-life-insurance-on-a-7-a-loan"},{"question":"When is life insurance on key principals required by the SBA, and who must be the beneficiary?","url":"https://dealroom.so/for-lenders/questions/when-is-life-insurance-on-key-principals-required-by-the-sba-and-who-must-be-the-beneficia"},{"question":"Can the borrower's business entity be named as the beneficiary for SBA-mandated life insurance, instead of the lender?","url":"https://dealroom.so/for-lenders/questions/can-the-borrower-s-business-entity-be-named-as-the-beneficiary-for-sba-mandated-life-insur"},{"question":"How should a lender structure the beneficiary and assignment of life insurance on a key principal for a 7(a) loan?","url":"https://dealroom.so/for-lenders/questions/how-should-a-lender-structure-the-beneficiary-and-assignment-of-life-insurance-on-a-key-pr"}]},"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 — Beneficiary","url":"https://dealroom.so/glossary/beneficiary","source_type":"DealRoom Data"}}