Hotels, motels, and B&Bs — where SBA loans, GM key-person risk, and seasonal cash flow intersect.
The surviving spouse inherits the business + a personally-guaranteed SBA note. Lender calls the loan; family may have to sell the property under duress.
Life insurance structured to pay off the SBA loan at death. Business continues. Family keeps optionality — operate, sell, or lease — on their terms.
Revenue craters while owner works the front desk. No budget for an executive search firm. Reputation damage from slipping service.
Key-person coverage on the GM (owned by the business) — provides a lump sum to fund recruitment, retention bonus for interim coverage, and a buffer against revenue dip.
Buyout negotiated under stress. Valuation disagreement. Either side can block operations while legal fees pile up.
Pre-agreed buy-sell with funded life insurance on each partner. Clear valuation formula. Clean exit — at death, disability, or by choice.
Indexed to 100 at year 1. Hand-set illustrative scenarios — not a projection.
Illustrative example — not a guarantee or projection. Individual business outcomes depend on industry conditions, carrier underwriting, state availability, and many other factors. Insurance and annuity guarantees are backed by the financial strength and claims-paying ability of the issuing carrier.
Carrier selection depends on your state, underwriting, and the specific product. Not an endorsement.
You've seen the playbook for your industry. A 15-minute call confirms which pieces (buy-sell, key person, 162 bonus) apply to your entity structure — no obligation.
