SBA Loan Closings (Session 9): Insurance in SBA 504 and 7(a) Loan Closings

• 1 When life insurance is required and how to calculate required coverage from discounted collateral
• 2 How to obtain and document a collateral assignment of life insurance, including required signatures and home office filing
• 3 Life policy term rules: run approximately concurrent with the loan and SBA minimum terms for 504 loans
• 4 Flood and hazard insurance: NFIP limits, LOMA/LOMR relief, condo policy issues, and mortgagee vs lender loss payee

Based on transcript analysis