Term Life Insurance as Collateral for SBA 7(a) Loan

Member resources:

Frequent asked questions:

What is Searchfunder.com?

Searchfunder.com is an online community of searchers, investors, lenders, brokers and other professionals. Over 80% of those involved in searchfunds maintain a Searchfunder account to help them network, hire, and mentor others.

What are the benefits of membership?

In addition to accessing the most active online network of business buyers, Searchfunder licenses research that is simply not cost effective for individuals. Access over 15,000 industry reports and 50,000 transaction financials. You also get monthly credits for contact information for your company sourcing campaign with the option to purchase more at drastically discounted rates. Searchfunder has pre-purchased access from these data providers in order to empower individual buyers and to help searchers level the playing field versus private equity.

Do you have deals?

While we are primarily a buy-side network, we do have hundreds of brokers that regularly post deals to the community.

Can I find an internship on Searchfunder?

Absolutely! We have the industry's largest intern job board. If you are considering a search, the first step is to help another business buyer so you can hit the ground running.

What does it cost?

Searchfunder is a subscription service. We offer flexible monthly, annual and lifetime memberships.

Monthly

$79 / month

Annual

$19 / month

Lifetime

$432 / once

Those who maintain an account with us for over 4 continuous years are permanently added to the community without the need for a membership.

Do I need an MBA to join?

While a large number of our members come from dedicated programs at Harvard Business School, Stanford GSB, Chicago Booth, and other top programs, searching is no longer reserved for the elite. With the current abundance of dry powder in private equity, and an increasing number of business owners reaching retirement age, good deals rarely go unfunded.

Post a question, deal, job, etc...

Make a post...

Complete registration to post.

by a searcher from University of California, Los Angeles
in Orange County, CA, USA

2yrs ago

Term Life Insurance as Collateral for SBA 7(a) Loan

Let's say you apply for an SBA 7(a) loan in the amount of $2M, but you can only personally guarantee up to $500k. Are you able to bridge the gap--in this case $1.5M--with a term life insurance policy? If so, does the policy term length need to match the loan term length (either 5 or 10 years) or would it need to be longer?

If anyone here has done this, please feel free to share your experience and/or advice.

0 Likes

170 Views

reply by a searcher 2yrs ago
from University of California, Los Angeles in Orange County, CA, USA

Do you know if multiple life insurance policies are allowed in order to cover a larger loan of $4M - $5M? Some life insurance policies are limited to $2M - $3M based on a quick Google search.

reply by a lender 2yrs ago
from Eastern Illinois University in 900 E Diehl Rd, Naperville, IL 60563, USA

Sorry for my delayed response. Yes, you can use multiple insurance policies. If you need some good agents that specialize in life insurance and do it for SBA loans, I am happy to get you some contacts. Good luck.