I have a CD at my bank and it's payable upon death to my sister. My bank said I could not secure a loan by the CD unless my sister signs the promissory note also, but I don't what my sister involved in my business, nor do I want her to know the CD is payable on death to her.
Speak with the banker again, or his/her supervisor. The POD designation conveys no ownership rights at until you, the owner, passes. At that time most states allow the loan and its right of repayment from the collateral, to supersede that transfer which means the bank will be paid first. Ensure this is the case here as that is the only impediment we could see, absent other factors making them just not want to make the loan.
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Speak with the banker again, or his/her supervisor. The 