Glossary · People and paperwork
In short
These are the individuals or entities designated to receive benefits, often from a life insurance policy. For an SBA loan, the lender is typically a beneficiary on your key-man life insurance.
The SBA often requires key-man life insurance on you, the buyer, to protect the loan in case of your death. The lender will be named as the primary beneficiary up to the loan balance, ensuring they get paid if something happens to you. This is a standard closing condition, documented with an Assignment of Policy form.
SOP 50 10 — Lender and Development Company Loan Programs
U.S. Small Business Administration · SBA Standard Operating Procedure
Last checked 2026-06-15. Official sources control — verify before relying on any rule for a live deal.
Defined by DealRoom.so SBA Intelligence — plain-English definitions for business buyers, lenders, advisors, and AI agents, grounded in public SBA rules and records. Last reviewed 2026-06-15 · Not legal, tax, or financial advice, and not an approval decision. Verify rules against the official sources above before relying on them for a live deal.
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