{"ok":true,"canonical_url":"https://dealroom.so/glossary/full-standby-status","api_url":"https://dealroom.so/api/public/glossary/full-standby-status","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-status","term":"Full Standby Status","group":"Your money in the deal","definition":"A condition where a seller note or other debt owed to an associate cannot receive any principal or interest payments until the SBA loan is fully repaid. This strengthens the SBA loan's position.","what_it_means":"If the seller takes a note, or if there's other debt from an associate, the SBA often requires it to be on Full Standby. This means you cannot pay that debt until your SBA loan is paid off, ensuring your cash flow goes to the senior SBA debt. It's a key part of your equity injection.","url":"https://dealroom.so/glossary/full-standby-status","official_sources":[{"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"},{"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"}],"related":[{"slug":"standby","term":"Standby","url":"https://dealroom.so/glossary/standby"},{"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"},{"slug":"standby-agreement","term":"Standby agreement","url":"https://dealroom.so/glossary/standby-agreement"}],"related_questions":[{"question":"What are the rules if a seller note is not on full standby status?","url":"https://dealroom.so/sba-7a/questions/what-are-the-rules-if-a-seller-note-is-not-on-full-standby-status"},{"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":"How does a lender verify the full standby status of a non-SBA third-party debt?","url":"https://dealroom.so/for-lenders/questions/how-does-a-lender-verify-the-full-standby-status-of-a-non-sba-third-party-debt"},{"question":"How must a lender document the full standby status of a seller note to ensure SBA compliance?","url":"https://dealroom.so/for-lenders/questions/how-must-a-lender-document-the-full-standby-status-of-a-seller-note-to-ensure-sba-complian"},{"question":"How does a lender verify a seller note's full standby status for 7(a) equity injection compliance?","url":"https://dealroom.so/for-lenders/questions/how-does-a-lender-verify-a-seller-note-s-full-standby-status-for-7-a-equity-injection-comp"},{"question":"What specific documentation does a lender need to confirm full standby status for a seller note in an acquisition?","url":"https://dealroom.so/for-lenders/questions/what-specific-documentation-does-a-lender-need-to-confirm-full-standby-status-for-a-seller"}]},"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 Status","url":"https://dealroom.so/glossary/full-standby-status","source_type":"DealRoom Data"}}