Glossary · People and paperwork
In short
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.
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.
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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