Glossary · Your money in the deal
In short
A type of life insurance that provides coverage for your entire life and accumulates cash value over time. This cash value can be a valuable asset for your loan application or as collateral.
If you have a whole life policy with sufficient cash value, it can be used to satisfy some of the SBA's collateral requirements, especially if the business itself is under-collateralized. The lender will require an assignment of policy form, giving them a lien on the cash value until the loan is repaid.
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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