Get the request in writing
Record the borrower, insured person, amount, timing, collateral-assignment wording and lender contact. Do not assume every SBA loan has the same requirement.
Separate coverage from assignment
The life-insurance policy provides a death benefit under its terms. A collateral assignment gives the lender rights to proceeds for the debt. Ask the lender and insurer which forms, signatures and acknowledgments they require.
Plan for underwriting time
Age, health information, product, amount and carrier process can affect timing. This website does not estimate approval.
Confirm the current program rule
Ask which version of the SBA operating procedure applies to your loan. Keep the lender’s written instructions with that reference and your policy documents.