Glossary · People and paperwork
In short
The person or entity designated to receive assets or benefits, such as the payout from a life insurance policy.
In an SBA loan context, the lender is often named as the beneficiary on a life insurance policy for the borrower, especially if "key man" insurance is required. This ensures that if something happens to you, the loan can still be repaid. You'll also designate beneficiaries for other personal assets.
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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