{"ok":true,"canonical_url":"https://dealroom.so/glossary/premium-payment","api_url":"https://dealroom.so/api/public/glossary/premium-payment","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":"premium-payment","term":"Premium payment","group":"Your money in the deal","definition":"The regular payment you make to keep an insurance policy active. As a buyer, your ability to make these payments will be part of your personal financial picture.","what_it_means":"For Key man insurance or life insurance assigned to the lender, you'll be responsible for ongoing premium payments. These payments are part of your personal expenses that lenders consider when evaluating your repayment capacity and global cash flow. Ensure you budget for them post-acquisition.","url":"https://dealroom.so/glossary/premium-payment","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":"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":"repayment-capacity","term":"Repayment capacity","url":"https://dealroom.so/glossary/repayment-capacity"},{"slug":"personal-financial-statement","term":"Personal financial statement","url":"https://dealroom.so/glossary/personal-financial-statement"}],"related_questions":[{"question":"What factors primarily influence the premium cost of business life insurance?","url":"https://dealroom.so/sba-7a/questions/what-factors-primarily-influence-the-premium-cost-of-business-life-insurance"},{"question":"How does an insured's age affect business life insurance premium costs?","url":"https://dealroom.so/sba-7a/questions/how-does-an-insured-s-age-affect-business-life-insurance-premium-costs"},{"question":"What counts as \"my own money\" for the down payment?","url":"https://dealroom.so/sba-loans/basics/what-counts-as-my-own-money-for-the-down-payment"},{"question":"Can an investor fund my SBA 7(a) down payment?","url":"https://dealroom.so/sba-7a/questions/can-an-investor-fund-my-sba-7-a-down-payment"},{"question":"Is my equity injection (down payment) always required to be cash?","url":"https://dealroom.so/sba-loans/basics/is-my-equity-injection-down-payment-always-required-to-be-cash"},{"question":"What if my down payment funds are transferred from an international account?","url":"https://dealroom.so/sba-7a/questions/what-if-my-down-payment-funds-are-transferred-from-an-international-account"}]},"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 — Premium payment","url":"https://dealroom.so/glossary/premium-payment","source_type":"DealRoom Data"}}