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Licenses and Insurance

What license and insurance documents the SBA requires, why they matter, and how to complete them without delays—even if you’re just getting started.

WHY

The SBA and your lender need to confirm that your business is legally registered and properly insured. These documents show that:

✅ You’re authorized to operate in your city/state

✅ Your business is protected against loss or liability

✅ The lender has the right to recover funds if something goes wrong

These are standard requirements for all SBA loans and must be finalized before funds can be disbursed.

WHAT

📄 Business License / Permit / Certificate

You’ll need a license or registration from your city, county, or state that proves your business is operating legally.

If your business doesn’t need a license, you’ll still need to provide a screenshot or link from a government source confirming that no license is required.

🛡️ Insurance (if loan is $50,000 or more)

SBA lenders typically require two types of insurance to protect you and the loan:

Business Property Insurance (BPP)

  • Covers damage to equipment, inventory, or your workspace

  • Your lender must be listed as:

    • Certificate Holder

    • Lender’s Loss Payable

  1. General Liability Insurance (GLL)

    • Covers things like slip-and-falls or customer claims

    • Required coverage: $1MM per occurrence / $2MM aggregate

    • Your lender must be listed as:

      • Certificate Holder

      • Additional Insured

📌 Your lender will provide the exact Certificate Holder wording they need—copy/paste it into your request to your insurance agent.

HOW

✅ For License:

  • Look up your business type at your Secretary of State, city, or county website

  • If you don’t need a license, take a screenshot of the state/city site that confirms that

  • Upload your active license or supporting proof with your business name clearly visible

✅ For Insurance:

  • Contact your insurance agent and request a Certificate of Insurance (COI)

  • Mention the required coverage and lender requirements listed above

  • Upload the COI PDF to your document portal—or email it directly to your loan officer

    COI Redacted_page-0001

📣 Pro Tips:

  • If you’re uninsured, we can connect you with a trusted broker for fast turnaround

  • Make sure your business name matches your loan application

  • The policy must be current and in force through the loan closing date

FAQ – License & Insurance

Q: What if my business is home-based or online-only?

A: General liability may still be required. We’ll help you find coverage that fits your setup.

Q: I don’t have a license—what should I do?

A: Check with your local/state agency. If you’re exempt, we still need documentation to confirm that.

 

Q: My insurance agent isn’t sure how to format the COI—what should I tell them?

A: Ask your lender for the exact Certificate Holder language. Copy it directly into your agent’s request.

Q: Can I close my loan without this?

A: No. SBA won’t allow funding to go out until license and insurance requirements are met.