Assumption of SBA Loan. Proof of ongoing insurance on the collateral with the SBA named as mortgagee must be provided.SBA loans, including the SBA 7(a) loan, are fully assumable with SBA approval. Assumption of Loan Requirement Letter for disaster loan servicing action request packages. About this document and download. A loan assumption is a lending process where a borrower formally takes over or "assumes" a current home loan from a home seller. Another option to sell a business with an SBA loan is for the buyer to assume the loan. SBA loans are fully assumable with SBA approval. Start the servicing request for an EIDL loan early in the process. How to get your loan assumption approved for your home purchase.