Get facts, not assumptions
An agent’s informal view that coverage may be difficult is different from a carrier decision. SBA guidance discusses written documentation from a licensed insurer when a lender determines a required principal is uninsurable.
A hard outcome is not an automatic loan answer
Documentation of uninsurability does not automatically waive an insurance requirement or guarantee loan approval. The lender determines how to handle the transaction under the applicable program and its own underwriting standards.
Coordinate the process
Share the outcome and documentation with your lender promptly. Work with an insurance professional and the lender so the carrier result, available documentation and transaction impact are understood by everyone involved.
For the broader process, review SBA loan life insurance requirements.