Notifying the SBA when someone dies
Executor is responsible for notifying the SBA
OverviewWhen someone dies
SBA Answer Desk
Phone1-800-827-5722
TTY711
Emailanswerdesk@sba.gov
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HoursMonday through Friday, 9:00 a.m. to 6:00 p.m. ET (closed federal holidays)
MySBA Loan Portal Customer Service
Phone1-800-827-5722
Emailcls@sba.gov
WebsiteLearn about benefits→
HoursMonday through Friday, 9:00 a.m. to 6:00 p.m. ET
SBA Disaster Customer Service
Phone1-800-659-2955
TTY711
Timeline
Contact the lender immediately; loan assumption and estate claims are processed per individual loan terms
WebsiteLearn more →
HoursMonday through Friday, 8:00 a.m. to 8:00 p.m. ET
Verified Jul 2026
When someone dies, the U.S. Small Business Administration (SBA) must be notified. The executor is responsible for notifying the SBA.
Notification deadline: As soon as possible; contact the lender to prevent default.
Steps to take
Steps for notifying the SBA and applying for survivor benefits:
1
Determine the type of SBA loan and contact the appropriate party:
- •SBA 7(a) loans: contact the participating lender that made the loan
- •SBA 504 loans: contact the Certified Development Company (CDC) and the third-party lender
- •SBA microloans: contact the intermediary lender (nonprofit organization)
- •SBA disaster loans: contact SBA directly at 800-659-2955 or email disastercustomerservice@sba.gov
- •COVID-19 EIDL: contact the COVID-19 EIDL Servicing Center (CESC) at 833-853-5638 or email CESC@sba.gov (include the loan or application number)
2
Notify the lender of the borrower's death:
- •Provide a certified copy of the death certificate
- •Provide letters testamentary or letters of administration
- •Request information about the loan balance, terms, and personal guarantee obligations
3
Evaluate options for the business and the loan:
- •Continue the business and assume the loan (with lender/SBA approval)
- •Sell the business and use proceeds to repay the loan
- •Repay the loan from estate assets
- •Negotiate with the lender on modified terms if the estate or business cannot repay in full
4
Review the loan documents (promissory note, personal guarantee, and loan agreement) to understand specific default provisions and successor obligations.
5
Set up electronic payments through the MySBA Loan Portal at lending.sba.gov; as of October 1, 2025, the SBA only accepts electronic payments and returns mailed checks to sender.
6
Consult a licensed attorney and accountant for business succession planning and tax implications.
Required Documents
- Certified copy of the death certificate
- Letters testamentary or letters of administration
- SBA loan documents (promissory note, personal guarantee, loan agreement)
- Business financial statements
- Business operating agreement or partnership agreement
- Life insurance policy (if assigned as collateral for the loan)
Timeline
Contact the lender immediately; loan assumption and estate claims are processed per individual loan terms
Survivor benefits
Business Continuation / Loan Assumption
If the business can continue operating, a surviving business partner, family member, or buyer may be able to assume the SBA loan, subject to lender and SBA approval. The new borrower must meet SBA eligibility requirements. Contact the lender to discuss assumption procedures. For 504 loans, the Certified Development Company (CDC) handles assumption with SBA prior written approval.
Eligibility: Surviving business partner, heir, or qualified buyer who meets SBA eligibility requirements
How to apply: Contact the SBA lender to begin the assumption process; the lender evaluates the new borrower's creditworthiness
Learn more →Estate Repayment of SBA Loan
The personal guarantee on an SBA loan (required for owners with 20% or more ownership under 13 CFR 120.160) becomes a claim against the deceased borrower's estate. The estate is responsible for repaying the loan from available assets. If the estate lacks sufficient funds, the lender may pursue collateral or file a claim in probate.
Eligibility: Estate of a deceased SBA loan borrower
How to apply: The executor should contact the lender to discuss repayment options and provide a copy of the death certificate
Learn more →SBA Disaster Loan Procedures
SBA disaster loans (physical damage and EIDL, including COVID-19 EIDL) do not automatically discharge upon the borrower's death. These loans must be repaid and are not forgivable. The estate or co-borrower is responsible for continued payments. SBA services disaster loans directly (not through a lender), so contact SBA disaster loan customer service. For a COVID-19 EIDL, contact the COVID-19 EIDL Servicing Center (CESC).
Eligibility: Estate or co-borrower of a deceased SBA disaster loan recipient
How to apply: For non-COVID disaster loans, contact SBA Disaster Customer Service at 800-659-2955 or disastercustomerservice@sba.gov. For a COVID-19 EIDL, contact the COVID-19 EIDL Servicing Center (CESC) at 833-853-5638 or CESC@sba.gov. Manage payments through the MySBA Loan Portal at lending.sba.gov
Learn more →SBA Disaster Loan Assumption
A surviving co-borrower, heir, or buyer may request to assume an SBA disaster loan. The estate provides a copy of the death certificate and, where collateral is involved, probate documents transferring ownership of the collateral to the assumptor. Borrowers and guarantors have 30 calendar days to submit the completed assumption packet; SBA reviews completed packets within 15 business days. Approval is not guaranteed and may be conditioned on curing defaults.
Eligibility: Surviving co-borrower, heir, or qualified buyer of a deceased SBA disaster loan borrower
How to apply: Submit the assumption packet (including the death certificate and, for a COVID-19 EIDL, request the servicing action through the CESC) to the assigned Disaster Loan Servicing Center: Birmingham DLSC 800-736-6048, El Paso DLSC 800-487-6019, or the National Disaster Loan Resolution Center 855-788-3154
Learn more →Frequently asked questions
SBA loans do not automatically discharge upon the borrower's death. The personal guarantee (required for owners with 20% or more ownership) becomes a claim against the estate. The lender works with the estate or surviving business partners to determine next steps: loan assumption, sale of the business, or repayment from estate assets.
Generally yes. Under 13 CFR 120.160(a), holders of at least a 20 percent ownership interest generally must guarantee the loan. The SBA or lender may also require guarantees from other individuals when deemed necessary for credit or other reasons. This guarantee becomes a claim against the guarantor's estate at death.
For SBA 7(a), 504, and microloans, contact the participating lender — not the SBA. The lender handles loan servicing. For SBA disaster loans (physical damage and EIDL), contact the SBA directly at 800-659-2955.
No. SBA disaster loans are not forgivable and must be repaid. The estate or co-borrower is responsible for continued payments. Contact SBA Disaster Customer Service at 800-659-2955 for assistance with the specific loan.
A COVID-19 EIDL is not forgiven at the borrower's death; it remains a debt handled by the estate or a co-borrower. SBA services these loans directly through the COVID-19 EIDL Servicing Center (CESC). A surviving co-borrower, heir, or buyer can request an assumption or change-in-ownership servicing action. Contact CESC at 833-853-5638 or CESC@sba.gov and include the loan or application number; manage payments through the MySBA Loan Portal at lending.sba.gov.
If the estate lacks sufficient assets, the lender may pursue collateral securing the loan. For SBA-guaranteed loans, the SBA pays the lender's guarantee portion after the lender exhausts recovery efforts. The SBA may then pursue a claim against the estate for the guaranteed amount. Consult a licensed attorney for specific guidance.
After completing the notification process, eligible survivors can apply for 4 benefits through the SBA. Each benefit has its own eligibility requirements and application process.
Keep copies of all documents submitted to the SBA. Original documents submitted for verification are typically returned after processing.
SBA Answer Desk
Phone1-800-827-5722
TTY711
Emailanswerdesk@sba.gov
WebsiteVisit website→
HoursMonday through Friday, 9:00 a.m. to 6:00 p.m. ET (closed federal holidays)
MySBA Loan Portal Customer Service
Phone1-800-827-5722
Emailcls@sba.gov
WebsiteLearn about benefits→
HoursMonday through Friday, 9:00 a.m. to 6:00 p.m. ET
SBA Disaster Customer Service
Phone1-800-659-2955
TTY711
Timeline
Contact the lender immediately; loan assumption and estate claims are processed per individual loan terms
WebsiteLearn more →
HoursMonday through Friday, 8:00 a.m. to 8:00 p.m. ET
Verified Jul 2026