Do you need holding company to close SBA loan

[Jake Healy]

I'm a residential loan officer and I have a client who is taking out a loan (not through me) to buy a wharehouse for their business. The lender is saying they need to set up a holding company to hold the loan and that they cannot hold it in their business name. She was asking me if I knew anything about it and I do not but it made me curious to know. Does anyone know why she wouldn't be able to finance it through the business?