{"ok":true,"canonical_url":"https://dealroom.so/glossary/full-standby-agreement","api_url":"https://dealroom.so/api/public/glossary/full-standby-agreement","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":"full-standby-agreement","term":"Full Standby Agreement","group":"Your money in the deal","definition":"This formal agreement puts a seller note or other debt 'on standby,' meaning no payments can be made until the SBA loan is fully repaid. It makes the seller's debt subordinate to the SBA loan.","what_it_means":"If a seller note counts as your equity injection, the SBA usually requires a full standby. This means no principal or interest payments can be made to the seller until your SBA loan is fully repaid. Ensure your seller understands this restriction on their financing upfront.","url":"https://dealroom.so/glossary/full-standby-agreement","official_sources":[{"slug":"sop-50-10","title":"SOP 50 10 — Lender and Development Company Loan Programs","official_url":"https://www.sba.gov/document/sop-50-10-lender-development-company-loan-programs","official_label":"View on SBA.gov","authority_tier":2,"publisher":"U.S. Small Business Administration","source_guide_url":"https://dealroom.so/sba-7a/sources/sop-50-10"},{"slug":"13-cfr-part-120","title":"13 CFR Part 120 — Business Loans","official_url":"https://www.ecfr.gov/current/title-13/chapter-I/part-120","official_label":"View on eCFR","authority_tier":1,"publisher":"Office of the Federal Register","source_guide_url":"https://dealroom.so/sba-7a/sources/13-cfr-part-120"}],"related":[{"slug":"subordinated-debt","term":"Subordinated Debt","url":"https://dealroom.so/glossary/subordinated-debt"},{"slug":"partial-standby-agreement","term":"Partial Standby Agreement","url":"https://dealroom.so/glossary/partial-standby-agreement"},{"slug":"seller-note","term":"Seller note","url":"https://dealroom.so/glossary/seller-note"},{"slug":"equity-injection","term":"Equity injection","url":"https://dealroom.so/glossary/equity-injection"}],"related_questions":[{"question":"What are the specific conditions for an acceptable full standby agreement?","url":"https://dealroom.so/for-lenders/questions/what-are-the-specific-conditions-for-an-acceptable-full-standby-agreement"},{"question":"What specific language must a seller standby agreement include to ensure full standby status for 7(a) equity injection?","url":"https://dealroom.so/for-lenders/questions/what-specific-language-must-a-seller-standby-agreement-include-to-ensure-full-standby-stat"},{"question":"What specific language must a full standby agreement contain to be acceptable to the SBA?","url":"https://dealroom.so/for-lenders/questions/what-specific-language-must-a-full-standby-agreement-contain-to-be-acceptable-to-the-sba"},{"question":"What specific language is required in a seller note's subordination agreement to ensure it counts as full standby equity?","url":"https://dealroom.so/for-lenders/questions/what-specific-language-is-required-in-a-seller-note-s-subordination-agreement-to-ensure-it"},{"question":"Can a full standby seller note accrue interest during the standby period?","url":"https://dealroom.so/for-lenders/questions/can-a-full-standby-seller-note-accrue-interest-during-the-standby-period"},{"question":"Can a seller note on full standby accrue interest during the standby period, even if not paid?","url":"https://dealroom.so/sba-7a/questions/can-a-seller-note-on-full-standby-accrue-interest-during-the-standby-period-even-if-not-pa"}]},"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 — Full Standby Agreement","url":"https://dealroom.so/glossary/full-standby-agreement","source_type":"DealRoom Data"}}