Glossary · Your money in the deal
Cash surrender value
In short
The amount of money you get back if you cancel a permanent life insurance policy before it matures. For a buyer, this can be a source of funds for your equity injection.
What it means in a deal
If you have whole life or universal life insurance, the cash surrender value is a liquid asset. Lenders may consider this as part of your personal liquidity for your equity injection, though it's less common than using cash or investments. You'd need to liquidate the policy or borrow against it.
Official sources
13 CFR Part 120 — Business Loans
Office of the Federal Register · Federal regulation
SOP 50 10 — Lender and Development Company Loan Programs
U.S. Small Business Administration · SBA Standard Operating Procedure
Last checked 2026-06-15. Official sources control — verify before relying on any rule for a live deal.
Related terms
Common questions about Cash surrender value
- How does the SBA verify the value of an equity injection consisting of non-cash assets, like equipment?
- Can personal retirement accounts or life insurance cash values be used as collateral if business assets are insufficient?
- Can a lender rely on a universal life insurance policy that has a cash value for a collateral assignment on a 7(a) loan?
- What if the primary business assets are specialized machinery with limited resale value?
- How does the SBA evaluate the value of contributed equipment for equity injection?
- Besides cash, what non-cash assets can I contribute to meet the 10% equity injection for an $800,000 acquisition?
Defined by CapBench SBA Intelligence — plain-English definitions for business buyers, lenders, advisors, and AI agents, grounded in public SBA rules and records. Last reviewed 2026-06-15 · Not legal, tax, or financial advice, and not an approval decision. Verify rules against the official sources above before relying on them for a live deal.
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