Attention all current and upcoming small business owners! The Nowell Agency is thrilled to present our latest insurance product designed specifically for small business owners. We now offer SBA loan life insurance fulfillment. The SBA loan application process can be a long road and having life insurance set up before submitting your application cuts down on that time considerably. If you’re thinking about applying for an SBA loan to finance your small business, this is vital information for you!
What is an SBA Loan?
SBA loans are one of the most popular types of loans for small businesses, usually ranging from $100,000 to upwards of several million dollars. SBA loans are obtained through an application process with a bank, credit union, or other lending institution. They are partially guaranteed by the U.S. Small Business Administration, and offer low interest rates and long repayment terms, making them an attractive option for businesses looking to invest in their future. The reason lenders are willing to offer such great loans to small businesses is that the SBA guarantees repayment of the loan amount from the government if the business owner defaults on the loan. Due to this backing, the application process for an SBA loan is a lengthy one with some more rigorous requirements than normal loans mandate. One of the SBA loan requirements is that borrowers maintain a life insurance policy that is at least equal to the loan amount.
SBA Life Insurance Fulfillment
Why is life insurance required on an SBA loan? In short, it serves as protection for the government and lending agency in the case of an untimely death of the business owner. If that were to occur, the loan would not be repaid, leaving the lending agency and the government holding the bag. The solution is to use life insurance as collateral to offset this risk. In other words, a life insurance policy that has a death benefit in the amount of the loan would ensure the loan could be repaid through the benefit. What does that mean for you, as a small business owner applying for an SBA loan? You will be required to have life insurance where you name a beneficiary, for example, someone in your family. Your SBA life insurance policy also must have a collateral assignment to your lender. The lender is not your beneficiary, but through a collateral assignment of life insurance, the loan would be repaid with the death benefit first, and anything left would then be distributed to your beneficiary.
While this may seem like a daunting requirement, there are a number of life insurance policies that are specifically designed to meet the needs of SBA loan borrowers. Gone are the days of jumping through a million hoops, seeing several doctors, and then waiting months for your life insurance approval. Instead, the Nowell Agency offers fast collateral assignments of life insurance for SBA loans. How fast is fast? You’ll apply for term life insurance online. Our online application for SBA life insurance can be completed in as little as five minutes and does not require a medical exam. The rest of the process takes an average of 2-3 days during which you’ll be approved, pay by credit card, and begin your coverage! Our SBA loan insurance policies can be tailored to fit your specific loan amount and repayment schedule. As a result, you’ll have peace of mind knowing that your SBA loan application process will proceed without any speed bumps!
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FROM OUR CLIENTS
The Nowell Agency has been my primary agent for many years and they are attentive, well-staffed, and easy to talk to. Their agency has helped me through state to state moves and career change and kept my assets covered.
My very first insurance experience was when I bought my first house and I called the Nowell agency for a quote. I had no idea what I needed or how much and they were so very kind and knowledgeable and explained everything to me in detail which I so much appreciated. That has been 4 years ago and im still a customer never plan to leave.
I have been very pleased with the quick and professional service by the Nowell agency. My agent was very efficient at locating a policy that met my needs and budget. Thank you to Kristy and the Nowell agency for providing me with fantastic customer service. I highly recommend this agency. You will not be disappointed.
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