{"ok":true,"canonical_url":"https://dealroom.so/glossary/seller-financed-portion","api_url":"https://dealroom.so/api/public/glossary/seller-financed-portion","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":"seller-financed-portion","term":"Seller-Financed Portion","group":"Your money in the deal","definition":"This is a portion of the purchase price the seller agrees to lend to the buyer, paid back over time. It's often required by the SBA to show the seller's continued interest in the business's success.","what_it_means":"The SBA typically requires the seller to finance at least 5% of the total project costs, usually on \"full standby\" for the life of the SBA loan. This means the seller cannot be paid principal or interest until the SBA loan is repaid. This seller note often counts towards your equity injection.","url":"https://dealroom.so/glossary/seller-financed-portion","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":"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":"equity-injection","term":"Equity injection","url":"https://dealroom.so/glossary/equity-injection"}],"related_questions":[{"question":"Can a seller-financed portion of an acquisition count as my down payment?","url":"https://dealroom.so/sba-loans/basics/can-a-seller-financed-portion-of-an-acquisition-count-as-my-down-payment"},{"question":"Can a seller-financed portion of the sale be considered part of my equity injection?","url":"https://dealroom.so/sba-loans/basics/can-a-seller-financed-portion-of-the-sale-be-considered-part-of-my-equity-injection"},{"question":"What percentage of a $1 million business acquisition can be financed by an SBA 7(a) loan if a significant portion is goodwill?","url":"https://dealroom.so/sba-7a/questions/what-percentage-of-a-1-million-business-acquisition-can-be-financed-by-an-sba-7-a-loan-if-"},{"question":"Are there specific maximums for the percentage of a business acquisition that can be seller-financed on full standby?","url":"https://dealroom.so/sba-7a/questions/are-there-specific-maximums-for-the-percentage-of-a-business-acquisition-that-can-be-selle"},{"question":"What if the seller holds a significant portion of the acquired business's debt?","url":"https://dealroom.so/sba-7a/questions/what-if-the-seller-holds-a-significant-portion-of-the-acquired-business-s-debt"},{"question":"What happens if the seller requires a \"holdback\" of a portion of the purchase price after closing?","url":"https://dealroom.so/sba-7a/questions/what-happens-if-the-seller-requires-a-holdback-of-a-portion-of-the-purchase-price-after-cl"}]},"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 — Seller-Financed Portion","url":"https://dealroom.so/glossary/seller-financed-portion","source_type":"DealRoom Data"}}