SBA Financing Experience
We understand SBA financing, business acquisitions and the importance of meeting closing deadlines.
SBA Life Insurance Closing Desk
SBA Life Insurance Without Delaying Your Closing
Need life insurance for an SBA loan? We help business owners secure the coverage their lender requires and coordinate the collateral assignment from application through closing.
- Multiple Insurance Carriers
- Fast Underwriting Options
- SBA Financing Experience
- Collateral Assignment Assistance
Have a closing deadline? Tell us when you need your policy in place.
Already know what your lender requires? Start your application online.
Live Process View
In Progress
SBA Insurance Closing Desk
- 01Insurance RequirementLender condition received✓
- 02Quote & UnderwritingCarrier review in progressActive
- 03Policy ApprovedAcceptance and placement
- 04Collateral AssignmentAssignment documentation
- 05Lender DocumentationClosing team delivery
The Closing Condition
Your SBA Lender Requires Life Insurance. Now What?
You've found the business.
You've negotiated the deal.
You've arranged the financing.
“Life insurance is required prior to closing.”
Don’t let the insurance condition become the reason your SBA loan is delayed.
Get My SBA Life Insurance Quote
What we coordinate
One Process. One Point of Contact.
- ✓Determine lender requirementsClarify the amount, duration and documentation needed.
- ✓Compare available insurance carriersEvaluate suitable options for your individual situation.
- ✓Coordinate underwritingKeep the application moving toward a decision.
- ✓Get the policy issuedHelp coordinate acceptance, payment and placement.
- ✓Complete collateral assignmentCoordinate applicable forms with the carrier and lender.
- ✓Support lender documentationObtain carrier acknowledgment when applicable and provide applicable documentation.
Multiple Insurance Carriers
Different companies have different underwriting guidelines. We evaluate available options based on your individual situation.
Collateral Assignment Assistance
We help coordinate applicable assignment documentation between the borrower, insurance carrier and SBA lender.
Direct Application
Already Know What Your SBA Lender Requires?
Skip straight to the application.
If your lender has already provided the required life-insurance amount and you're ready to move forward, you can begin your life-insurance application online.
Quick Application Have your required coverage amount and target SBA closing date available before you begin.
A Coordinated Process
From Insurance Requirement to SBA Closing
We help keep the moving pieces organized so you and your lending team know what comes next.
- 01Tell Us About Your SBA Loan
Provide your loan amount, insurance requirement and closing date.
- 02Compare Insurance Options
We evaluate available carriers and underwriting options.
- 03Complete Underwriting
We help coordinate the application and underwriting process.
- 04Policy Issued
Once approved, accepted and paid, coverage is placed in force.
- 05Collateral Assignment
When required, we help coordinate applicable assignment documentation.
- 06Lender Documentation
Applicable documentation is provided to your lender for its review.
Final destinationSBA Closing
Timing Matters
How Fast Can I Get SBA Life Insurance?
Timelines depend on the applicant, carrier, coverage amount and underwriting required.
Potentially Days
For qualifying applicants.
Several Weeks
Medical information, records or exams may be required.
May Take Longer
Medical records and additional underwriting can extend the timeline.
The Best Strategy Is Simple: Start Early.
I Have an SBA Closing Deadline
Larger Coverage Needs
Need $1 Million, $2 Million, $3 Million or More?
SBA transactions frequently involve larger life-insurance requirements.
We work with business owners seeking coverage in connection with business acquisitions, franchise financing, partner buyouts, expansion financing and other SBA transactions.
Coverage availability is subject to insurance carrier underwriting.
Get My Quote$500K$1M$2M$3M$5M+
Coverage requirement
Defined by your SBA lenderPolicy fit reviewWhat we evaluate
Required death benefitRequired policy durationAge & healthExisting coverageLender requirementsClosing deadlineBudget
GoalAppropriate coverage for the transaction
Right-Size the Solution
You May Not Need an Expensive Permanent Policy
Term life insurance can often satisfy an SBA lender's life-insurance requirement.
Our objective isn’t to sell you the most expensive policy.
It’s to help you obtain appropriate coverage that satisfies your lender’s requirements and fits your individual situation.
Compare My Options
A Critical Closing Step
We Help Handle the Collateral Assignment
Getting approved for life insurance may only be part of satisfying your lender’s requirement. Your lender may also require the policy to be collaterally assigned as additional security for the loan.
ApplicantBusiness Owner
CoverageLife Insurance Policy
Security interestCollateral Assignment
CoordinatedAssigneeSBA Lender
Closing checklistInsurance Condition Cleared
What it generally means
A collateral assignment generally gives the lender certain rights to policy proceeds up to the amount it is entitled to under the assignment.
It does not necessarily mean the lender receives the entire life-insurance death benefit.
Get Help With My SBA Insurance
Illustrative Example
How Policy Proceeds May Be Allocated
The lender receives the amount it is entitled to under the collateral assignment. Remaining policy proceeds would generally be payable according to the policy terms and beneficiary designation.
This example is for illustration only. Actual distributions depend on policy terms, assignment terms and outstanding obligations.
Life Insurance Policy$2,000,000
Outstanding Loan at Death$750,000
Illustrative Remaining Proceeds*$1,250,000
*Subject to policy terms, assignment terms, beneficiary designation and outstanding obligations.
Existing Coverage Review
Already Have Life Insurance?
You may not need another policy.
An existing policy may potentially satisfy your SBA lender’s requirement. We’ll help evaluate:
- Coverage amount
- Remaining policy duration
- Policy ownership
- Existing assignments
- Beneficiary structure
- Lender requirements
Transaction Experience
SBA Financing We Help With
Business Acquisitions
Franchise Financing
SBA 7(a) Loans
SBA 504 Loans
Partner Buyouts
Business Expansion
Owner-Occupied Commercial Real Estate
Optional Planning Review
The SBA Requirement Protects the Loan. What Protects Everything Else?
Once the lender’s insurance requirement has been addressed, business owners may also want to consider whether they have adequate protection for their family, partners and company.
Family ProtectionKey Person InsuranceBuy-Sell PlanningBusiness SuccessionExecutive Benefits
For Lending Professionals
SBA Lenders & Loan Brokers
Have a borrower who needs life insurance before closing?
Send us the insurance requirement and we’ll help coordinate the insurance process.
You work on the SBA loan.We’ll work on the insurance condition.
01
→
Lender Sends RequirementCoverage need and closing date
02
→
Quote & UnderwritingInsurance process coordinated
03
→
Policy IssuedApproved, accepted and paid
04
Assignment & DocumentsApplicable paperwork delivered
Beau EcksteinSBA Financing Professional & Licensed Life Insurance Producer
About Beau Eckstein
SBA Financing Experience Meets Business Owner Protection
Beau Eckstein has spent more than 27 years in lending and finance and specializes in helping entrepreneurs obtain financing to purchase, start and expand businesses.
As both an SBA financing professional and licensed life insurance producer, Beau understands the transaction from both sides.
We don’t simply understand life insurance. We understand why your lender needs it, why timing matters and how the insurance requirement fits into your SBA closing.
“An SBA borrower doesn’t just need an insurance policy. They need to get to closing.”
Start Here
Get Your SBA Life Insurance Quote
Tell us about your SBA loan. It only takes a minute to get started.
✓ No detailed medical questions on this form
✓ Closing deadline captured upfront
✓ Borrower and lender referrals welcome
Ready to apply now?
Quick Application ↗
Common Questions
SBA Life Insurance FAQ
Clear answers about coverage, timing, collateral assignment and working with your lender.
Ask About My SBA LoanDoes every SBA loan require life insurance?+
No. Requirements depend on the SBA program, lender, collateral, ownership structure and circumstances of the transaction.
How much life insurance will I need?+
Your lender determines the required amount. Do not assume you automatically need coverage equal to the entire SBA loan.
Can term life insurance satisfy the requirement?+
Often, yes, provided the policy satisfies your lender’s requirements.
Can I use an existing life insurance policy?+
Potentially. Existing coverage may be usable depending on the lender’s requirements and policy characteristics.
How quickly can I obtain coverage?+
Some applicants may qualify for accelerated underwriting, while traditional or more complex underwriting may take several weeks or longer.
What is a collateral assignment?+
A collateral assignment gives the lender certain rights to policy proceeds as security for an obligation.
Does the bank become my beneficiary?+
Not necessarily. Collateral assignment and beneficiary designation are different concepts.
Can you work directly with my SBA lender?+
With the borrower’s authorization, we can help coordinate applicable insurance requirements and documentation with the lending team.
What happens when the SBA loan is paid off?+
The lender’s collateral assignment can generally be released after the secured obligation has been satisfied, subject to the applicable documentation and carrier procedures.
What if I have health issues?+
Insurance carriers have different underwriting guidelines. Having access to multiple available carriers may provide additional options.
SBA Insurance Guides
Clear guidance for the questions that can slow a closing.
Explore practical explanations for business owners and SBA lending teams. Your lender ultimately determines the insurance requirements for your transaction.
Guide
SBA Life Insurance
Understand why coverage may be requested and how to start early.
Read guide → GuideCollateral Assignment
Learn how an assignment differs from a beneficiary designation.
Read guide → GuideLoan Requirements
What determines the coverage and documentation your lender may request.
Read guide → GuideTerm Life for SBA Loans
When term coverage may be considered for a loan requirement.
Read guide → GuideBusiness Acquisitions
Insurance planning considerations when buying a business with SBA financing.
Read guide → GuideFor SBA Lenders
How we help coordinate requirements and policy documentation.
Read guide →
Move Your Closing Forward
Don’t Let Life Insurance Hold Up Your SBA Closing.
Start early and let us help coordinate the insurance requirement from quote through collateral assignment.
Get My SBA Life Insurance Quote
Quick Application ↗
Refer an SBA Borrower
Have an upcoming closing deadline? Tell us when you submit your request.