{"ok":true,"canonical_url":"https://dealroom.so/glossary/loss-payee","api_url":"https://dealroom.so/api/public/glossary/loss-payee","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":"loss-payee","term":"Loss payee","group":"The loan itself","definition":"The party designated to receive payment from an insurance policy in case of loss or damage. Your lender will be listed as a loss payee on your business insurance policies.","what_it_means":"For an SBA 7(a) loan, the lender is typically named as a loss payee on property and casualty insurance policies covering the business assets that serve as collateral. This ensures the lender's interest is protected if the collateral is damaged or destroyed.","url":"https://dealroom.so/glossary/loss-payee","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"},{"slug":"13-cfr-part-120","title":"13 CFR Part 120 — Business Loans","official_url":"https://www.ecfr.gov/current/title-13/chapter-I/part-120","official_label":"View on eCFR","authority_tier":1,"publisher":"Office of the Federal Register","source_guide_url":"https://dealroom.so/sba-7a/sources/13-cfr-part-120"}],"related":[{"slug":"collateral","term":"Collateral","url":"https://dealroom.so/glossary/collateral"},{"slug":"lien","term":"Lien","url":"https://dealroom.so/glossary/lien"},{"slug":"life-insurance","term":"Life insurance","url":"https://dealroom.so/glossary/life-insurance"}],"related_questions":[{"question":"What are the specific requirements for naming the lender as the loss payee on a life insurance policy collateral assignment?","url":"https://dealroom.so/for-lenders/questions/what-are-the-specific-requirements-for-naming-the-lender-as-the-loss-payee-on-a-life-insur"},{"question":"What steps must a lender take to mitigate loss during loan liquidation before submitting a Universal Purchase Package (UPP)?","url":"https://dealroom.so/for-lenders/questions/what-steps-must-a-lender-take-to-mitigate-loss-during-loan-liquidation-before-submitting-a"},{"question":"What specific steps must a lender take to mitigate loss during loan liquidation before submitting a Universal Purchase Package (UPP)?","url":"https://dealroom.so/for-lenders/questions/what-specific-steps-must-a-lender-take-to-mitigate-loss-during-loan-liquidation-before-sub"}]},"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 — Loss payee","url":"https://dealroom.so/glossary/loss-payee","source_type":"DealRoom Data"}}