{"ok":true,"canonical_url":"https://dealroom.so/glossary/partial-standby-seller-note","api_url":"https://dealroom.so/api/public/glossary/partial-standby-seller-note","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":"partial-standby-seller-note","term":"Partial Standby Seller Note","group":"Your money in the deal","definition":"A seller note where the seller agrees to defer some principal payments, or all principal and some interest payments, while the SBA loan is outstanding. This helps meet SBA equity injection rules.","what_it_means":"With a partial standby, the seller note can either have deferred principal payments for the SBA loan term, or interest-only payments for the first two years, then principal and interest for the remainder of the SBA loan term. This arrangement boosts your equity injection for the SBA lender, showing more cash flow available for the SBA loan. Ensure you understand the specific deferral terms.","url":"https://dealroom.so/glossary/partial-standby-seller-note","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":"seller-note","term":"Seller note","url":"https://dealroom.so/glossary/seller-note"},{"slug":"standby","term":"Standby","url":"https://dealroom.so/glossary/standby"},{"slug":"full-standby-agreement","term":"Full Standby Agreement","url":"https://dealroom.so/glossary/full-standby-agreement"},{"slug":"subordinated-debt","term":"Subordinated Debt","url":"https://dealroom.so/glossary/subordinated-debt"}],"related_questions":[{"question":"How does partial standby treatment affect a seller's note for eligibility?","url":"https://dealroom.so/for-lenders/questions/how-does-partial-standby-treatment-affect-a-seller-s-note-for-eligibility"},{"question":"Can a partial standby seller note include a provision for interest payments during the standby period?","url":"https://dealroom.so/for-lenders/questions/can-a-partial-standby-seller-note-include-a-provision-for-interest-payments-during-the-sta"},{"question":"Can a seller note on partial standby count towards the required equity injection?","url":"https://dealroom.so/sba-7a/questions/can-a-seller-note-on-partial-standby-count-towards-the-required-equity-injection"},{"question":"How does a seller note on *partial* standby affect my required equity injection for an acquisition?","url":"https://dealroom.so/sba-7a/questions/how-does-a-seller-note-on-partial-standby-affect-my-required-equity-injection-for-an-acqui"},{"question":"What are the requirements for a seller note to be structured with partial standby for a business acquisition?","url":"https://dealroom.so/sba-7a/questions/what-are-the-requirements-for-a-seller-note-to-be-structured-with-partial-standby-for-a-bu"},{"question":"When can a lender permit a partial standby seller note if the total equity injection exceeds minimum requirements?","url":"https://dealroom.so/for-lenders/questions/when-can-a-lender-permit-a-partial-standby-seller-note-if-the-total-equity-injection-excee"}]},"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 — Partial Standby Seller Note","url":"https://dealroom.so/glossary/partial-standby-seller-note","source_type":"DealRoom Data"}}