{"ok":true,"canonical_url":"https://dealroom.so/glossary/collateral-assignee","api_url":"https://dealroom.so/api/public/glossary/collateral-assignee","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":"collateral-assignee","term":"Collateral Assignee","group":"Doing the deal","definition":"A party, typically the SBA lender, to whom certain rights or assets are assigned as collateral for a loan. This protects the lender's interest.","what_it_means":"In an SBA loan context, your lender will often be named as a collateral assignee on key insurance policies, like life insurance for key principals or property insurance. This means if a claim is paid, the funds go to the lender first to protect their interest in the loan. This is common for \"key man\" life insurance, ensuring the loan can be repaid if a key person passes away.","url":"https://dealroom.so/glossary/collateral-assignee","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":"collateral","term":"Collateral","url":"https://dealroom.so/glossary/collateral"},{"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":"key-man-insurance","term":"Key man insurance","url":"https://dealroom.so/glossary/key-man-insurance"}],"related_questions":[{"question":"Can a 7(a) lender release a portion of the collateral without prior SBA approval if the remaining collateral is sufficient?","url":"https://dealroom.so/for-lenders/questions/can-a-7-a-lender-release-a-portion-of-the-collateral-without-prior-sba-approval-if-the-rem"},{"question":"When can a 7(a) lender release a portion of the collateral without prior SBA approval if the remaining collateral is sufficient?","url":"https://dealroom.so/for-lenders/questions/when-can-a-7-a-lender-release-a-portion-of-the-collateral-without-prior-sba-approval-if-th"},{"question":"Can cash in the business bank account count as collateral?","url":"https://dealroom.so/sba-loans/basics/can-cash-in-the-business-bank-account-count-as-collateral"},{"question":"What happens if my business does not have enough collateral?","url":"https://dealroom.so/sba-loans/basics/what-happens-if-my-business-does-not-have-enough-collateral"},{"question":"Can my business's accounts receivable be used as collateral?","url":"https://dealroom.so/sba-loans/basics/can-my-business-s-accounts-receivable-be-used-as-collateral"},{"question":"Is collateral always required for an SBA 7(a) loan?","url":"https://dealroom.so/sba-loans/basics/is-collateral-always-required-for-an-sba-7-a-loan"}]},"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 — Collateral Assignee","url":"https://dealroom.so/glossary/collateral-assignee","source_type":"DealRoom Data"}}