{"ok":true,"canonical_url":"https://dealroom.so/glossary/alternative-financing","api_url":"https://dealroom.so/api/public/glossary/alternative-financing","data_freshness":{"sba_records_through":"2026-05-31","fdic_records_through":"2026-03-31","dealroom_last_updated":"2026-06-15","timezone":"America/Chicago"},"source_summary":["Public SBA 7(a) loan records","FDIC institution data","DealRoom lender and franchise enrichment"],"term":{"slug":"alternative-financing","term":"Alternative financing","group":"The loan itself","definition":"Any method of funding a business that isn't a traditional bank loan, such as crowdfunding, venture capital, or private debt. Buyers should consider these if conventional loans aren't an option.","what_it_means":"If your deal doesn't fit SBA 7(a) criteria or you need funds quickly, you might explore alternative financing. This could include seller notes (beyond the SBA's standby rules), private investor debt, or even non-SBA conventional bank loans. Understand the higher costs and different terms often associated with these options.","url":"https://dealroom.so/glossary/alternative-financing","official_sources":[],"related":[{"slug":"conventional-loan","term":"Conventional loan","url":"https://dealroom.so/glossary/conventional-loan"},{"slug":"seller-note","term":"Seller note","url":"https://dealroom.so/glossary/seller-note"},{"slug":"subordinated-debt","term":"Subordinated Debt","url":"https://dealroom.so/glossary/subordinated-debt"},{"slug":"equity-injection","term":"Equity injection","url":"https://dealroom.so/glossary/equity-injection"}],"related_questions":[{"question":"What specific alternative base rates are permissible for variable rate 7(a) loans?","url":"https://dealroom.so/for-lenders/questions/what-specific-alternative-base-rates-are-permissible-for-variable-rate-7-a-loans"},{"question":"What alternative base rate options are available for variable rate 7(a) loans?","url":"https://dealroom.so/for-lenders/questions/what-alternative-base-rate-options-are-available-for-variable-rate-7-a-loans"},{"question":"What are the current alternative base rate options for variable rate 7(a) loans?","url":"https://dealroom.so/for-lenders/questions/what-are-the-current-alternative-base-rate-options-for-variable-rate-7-a-loans"},{"question":"What are the current alternative base rate options available for variable rate 7(a) loans?","url":"https://dealroom.so/for-lenders/questions/what-are-the-current-alternative-base-rate-options-available-for-variable-rate-7-a-loans"},{"question":"What alternative credit analysis methods are acceptable for 7(a) Small Loans following the SBSS sunset?","url":"https://dealroom.so/for-lenders/questions/what-alternative-credit-analysis-methods-are-acceptable-for-7-a-small-loans-following-the-"},{"question":"Which types of businesses are typically ineligible for SBA 7(a) financing?","url":"https://dealroom.so/sba-loans/basics/which-types-of-businesses-are-typically-ineligible-for-sba-7-a-financing"}]},"caveats":["Definitions represent DealRoom's plain-English interpretation for buyers; verify regulatory terms against the official SBA and eCFR sources listed.","Not legal, tax, or financial advice, and not an SBA eligibility determination."],"citation":{"label":"DealRoom.so Glossary — Alternative financing","url":"https://dealroom.so/glossary/alternative-financing","source_type":"DealRoom Data"}}