Glossary · Your money in the deal
Premium payment
In short
The regular payment you make to keep an insurance policy active. As a buyer, your ability to make these payments will be part of your personal financial picture.
What it means in a deal
For Key man insurance or life insurance assigned to the lender, you'll be responsible for ongoing premium payments. These payments are part of your personal expenses that lenders consider when evaluating your repayment capacity and global cash flow. Ensure you budget for them post-acquisition.
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 Premium payment
- What factors primarily influence the premium cost of business life insurance?
- How does an insured's age affect business life insurance premium costs?
- What counts as "my own money" for the down payment?
- Can an investor fund my SBA 7(a) down payment?
- Is my equity injection (down payment) always required to be cash?
- What if my down payment funds are transferred from an international account?
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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