{"ok":true,"canonical_url":"https://dealroom.so/glossary/non-standby-debt","api_url":"https://dealroom.so/api/public/glossary/non-standby-debt","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":"non-standby-debt","term":"Non-standby debt","group":"The loan itself","definition":"This is debt owed by the business or its owners that does not need to be subordinated to the SBA loan. It can be repaid normally, unlike standby debt.","what_it_means":"For a 7(a) loan, any existing debt from the seller to the business, or from you to the business, must be analyzed. Non-standby debt is typically allowed to continue repayment, but the lender will assess its impact on global cash flow and the business's ability to service the SBA loan.","url":"https://dealroom.so/glossary/non-standby-debt","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":"standby","term":"Standby","url":"https://dealroom.so/glossary/standby"},{"slug":"subordinated-debt","term":"Subordinated Debt","url":"https://dealroom.so/glossary/subordinated-debt"},{"slug":"seller-note","term":"Seller note","url":"https://dealroom.so/glossary/seller-note"},{"slug":"standby-agreement","term":"Standby agreement","url":"https://dealroom.so/glossary/standby-agreement"}],"related_questions":[{"question":"What happens if a seller note on standby is subordinate to another non-SBA debt?","url":"https://dealroom.so/sba-7a/questions/what-happens-if-a-seller-note-on-standby-is-subordinate-to-another-non-sba-debt"},{"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":"What are the conditions under which a seller note on full standby can be subordinated to other non-SBA debt?","url":"https://dealroom.so/for-lenders/questions/what-are-the-conditions-under-which-a-seller-note-on-full-standby-can-be-subordinated-to-o"},{"question":"How does a lender verify the full standby status of a non-SBA debt to ensure eligibility for a 7(a) loan?","url":"https://dealroom.so/for-lenders/questions/how-does-a-lender-verify-the-full-standby-status-of-a-non-sba-debt-to-ensure-eligibility-f"},{"question":"How does a seller note on full standby affect the debt service coverage ratio calculation?","url":"https://dealroom.so/sba-7a/questions/how-does-a-seller-note-on-full-standby-affect-the-debt-service-coverage-ratio-calculation"},{"question":"Can working capital funds from the SBA loan be used to pay off existing non-SBA business debt?","url":"https://dealroom.so/sba-7a/questions/can-working-capital-funds-from-the-sba-loan-be-used-to-pay-off-existing-non-sba-business-d"}]},"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 — Non-standby debt","url":"https://dealroom.so/glossary/non-standby-debt","source_type":"DealRoom Data"}}