Glossary · People and paperwork
Sole assignee
In short
The only party to whom rights or property have been transferred. For an SBA loan, the lender must be the sole assignee of any required life insurance policy.
What it means in a deal
The SBA requires that the lender be the sole assignee of any life insurance policy used as collateral. This prevents other claims on the policy proceeds that could jeopardize the loan's repayment. Verify with your insurance provider that no other party is listed as an assignee.
Official sources
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 Sole assignee
- Does my business need to have employees, or can I be a sole proprietor?
- What are the specific requirements for business continuity if the seller is the sole proprietor?
- Does my business legal structure (like LLC or Sole Proprietorship) affect SBA 7(a) loan eligibility?
- Can I use an SBA 7(a) loan to purchase business equipment as the sole purpose of the loan?
- What are the key considerations for a lender when approving a material change in the borrower's business entity structure (e.g., sole proprietorship to LLC) during servicing?
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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