Life Insurance for SBA Loans - Common Questions

professional profile

April 02, 2025

by a professional in Rindge, NH 03461, USA

Question: If the amount of Life insurance is enough to cover the SBA loan amount will the applicant still have to include owned real estate in the PG?

Answer: Even with sufficient life insurance coverage to match the SBA loan amount, the SBA still requires that owners with a 20% or greater stake in the business personally guarantee the loan and pledge personal assets, including real estate, as collateral if business assets alone are insufficient to fully secure the loan.

Learn more: https://www.businessbridgeinsurance.com/

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Reply by a professional
in Dover, NH, USA
Great clarification ^redacted‌. What is your stance on using an existing life insurance policy that is designated to personal beneficiaries and using it to collaterally assign for the purpose of an SBA loan?
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