Chances are if you found us here, it’s because your lender has given you this good news and sent you a checklist of requirements for closing on your loan. It’s a long list and you’re busy enough already, we’ve been there, we know all about it.
Let’s face it, nothing about an SBA loan is easy, so why should this be? Because it’s the 21st century and electronic medical records can provide more information than a physical exam. So if you don’t enjoy taking time out of your day for a physical, a simplified issue policy may be right for you. The application is completed electronically and processing is complete within a week. A paper application is available should you prefer it. Accelerated underwriting speeds up processing time for clients and often doesn’t require anything but the application. Isn’t technology great?
Trust us to guide you to through the process of the SBA loan life insurance requirement and we’ll do our part to keep your loan closing on time. Anything can happen along the way, but by starting early, we can get the right policy at the best price for your situation.
You get the expertise of our advisors who have a streamlined process to determine which carrier would suit your needs best. Underwriting varies by carrier and the best fit saves time so you can close on your loan sooner. It’s that simple. Life insurance carriers cannot sell insurance direct; they must use agents, so why not use an agent experienced in fulfilling SBA requirements? You have a lot going on with your new or expanding business, so give us a call, tell us how much you need and for how long you need it. Our pre-screen discussion will determine the best source for your policy. We work quickly and stay on it daily until it’s issued.
The next step is the collateral assignment. The bank is not listed as the beneficiary of the policy, that’s still your loved one. However in the unlikely event you become an angel, the outstanding amount of the loan is due to the bank and the remaining life insurance benefit will be delivered to your loved ones. Since the loan has a decreasing balance, by doing the collateral assignment, the bank is only entitled to receive the actual balance due on the loan. The business would then be owned free and clear by your loved ones.
We work with 50 different carriers and have experience to know who has the best plan for your health conditions. Life insurance is not a “one size fits all” business. You wouldn’t go to your family doctor for surgery, would you? Don’t think for a second that your home & auto insurance agent can do what we do. SBA loan requirements vary by bank and vary if financing with an SBA 7(a) or 504 loan.
There is specific language that must be included in order for the life insurance policy to be approved for use to secure your loan. The SBA lending laws change and we stay up to date with the requirements to ensure your new policy can be used as collateral assignment as planned.
Contact us today to tell us how we can help you move your small business loan approval into an active closing scheduled!