{"ok":true,"canonical_url":"https://dealroom.so/glossary/primary-assignee","api_url":"https://dealroom.so/api/public/glossary/primary-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":"primary-assignee","term":"Primary assignee","group":"People and paperwork","definition":"In the context of a life insurance policy, this is the first party designated to receive the policy's payout. For a 7(a) loan, the lender is often the primary assignee on your key-person life insurance.","what_it_means":"The SBA requires key principals to carry life insurance assigned to the lender for the term of the loan. As a buyer, you'll be the insured, and the lender will be the primary assignee. This protects the lender if you, as the operator, pass away before the loan is repaid. It's a standard requirement to mitigate risk.","url":"https://dealroom.so/glossary/primary-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":"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"},{"slug":"beneficiary","term":"Beneficiary","url":"https://dealroom.so/glossary/beneficiary"},{"slug":"assignment-of-policy-form","term":"Assignment of Policy Form","url":"https://dealroom.so/glossary/assignment-of-policy-form"}],"related_questions":[{"question":"What is the primary purpose of SBA Form 1919 for eligibility?","url":"https://dealroom.so/for-lenders/questions/what-is-the-primary-purpose-of-sba-form-1919-for-eligibility"},{"question":"What is the primary purpose of the Universal Purchase Package (UPP)?","url":"https://dealroom.so/for-lenders/questions/what-is-the-primary-purpose-of-the-universal-purchase-package-upp"},{"question":"What is the primary purpose of SBA Form 1919, 'Borrower Information Form'?","url":"https://dealroom.so/sba-loans/basics/what-is-the-primary-purpose-of-sba-form-1919-borrower-information-form"},{"question":"What is the primary goal of the SBA 7(a) loan program?","url":"https://dealroom.so/sba-loans/basics/what-is-the-primary-goal-of-the-sba-7-a-loan-program"},{"question":"What are the primary fees charged on an SBA 7(a) loan?","url":"https://dealroom.so/sba-7a/questions/what-are-the-primary-fees-charged-on-an-sba-7-a-loan"},{"question":"What if the primary business assets are specialized machinery with limited resale value?","url":"https://dealroom.so/sba-7a/questions/what-if-the-primary-business-assets-are-specialized-machinery-with-limited-resale-value"}]},"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 — Primary assignee","url":"https://dealroom.so/glossary/primary-assignee","source_type":"DealRoom Data"}}