All loans in repayment, including past due loans, are eligible. Key Takeaways: SBA EIDL loans are not assumable, meaning they cannot be transferred to another party.Assumption of Loan Requirement Letter. Assumption of Loan Requirement Letter for disaster loan servicing action request packages. SBA 504 loans can only be assumed once, and the new loan must include a "due on sale or death" clause to prohibit any future assumptions. EIDL loans may only be used for specific types of business expenses. Find out legitimate ways you can use your EIDL loan. Are SBA 7(a) Loans Assumable? Fortunately for borrowers, SBA loans, including the SBA 7(a) loan , are fully assumable with SBA approval. If your business is experiencing financial hardship due to the COVID19 pandemic, the EIDL may be right for you.