{"ok":true,"canonical_url":"https://dealroom.so/glossary/primary-beneficiary","api_url":"https://dealroom.so/api/public/glossary/primary-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":"primary-beneficiary","term":"Primary Beneficiary","group":"People and paperwork","definition":"This is the person or entity designated to receive the proceeds from a life insurance policy. For SBA loans, the lender is often named the primary beneficiary.","what_it_means":"If the SBA requires life insurance on a key principal, the lender will typically be named the primary beneficiary up to the outstanding loan balance. This ensures the loan can be repaid if something happens to the key person. You will sign an Assignment of Policy Form, giving the lender this right, which protects them, not your family or business.","url":"https://dealroom.so/glossary/primary-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":"beneficiary","term":"Beneficiary","url":"https://dealroom.so/glossary/beneficiary"},{"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":"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 — Primary Beneficiary","url":"https://dealroom.so/glossary/primary-beneficiary","source_type":"DealRoom Data"}}