For standard 7(a), EWCP, CAPLines, International Trade and pilot loans the 7(a) Lender may follow its policy for comparable non-SBA loans but, where the loan is not fully secured and the business depends on one owner (sole proprietor, single-member LLC or similar), requires life insurance on that principal for the collateral shortfall; 7(a) Small, SBA Express and Export Express follow the Lender's written policy. A CDC assesses whether the business's viability rests on individuals and requires life insurance on the key principal where the 504 loan is not fully collateralized (discounted collateral below the net debenture, using the SOP's discount rates), for the shortfall and for at least the SOP's minimum term matching the debenture. Required policies are collaterally assigned to the lender (and SBA) with the insurer's home office acknowledgment and premiums paid by the Borrower; an existing policy may be pledged; credit or whole life should not be required; an uninsurable principal is documented by a licensed insurer.
The graph holds this control, the 0 it maps to, and the evidence behind each claim, over MCP and REST.