{"ok":true,"canonical_url":"https://dealroom.so/glossary/seller-financing-on-full-standby","api_url":"https://dealroom.so/api/public/glossary/seller-financing-on-full-standby","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-financing-on-full-standby","term":"Seller Financing on Full Standby","group":"Your money in the deal","definition":"This is when the seller provides a loan for part of the purchase price, but you don't make any payments on it until the SBA loan is fully repaid. It counts towards your equity injection.","what_it_means":"When a seller note is on full standby, it means all principal and interest payments are deferred for the entire term of the SBA 7(a) loan. This significantly strengthens your global cash flow, as you only have one debt payment. This type of seller financing is common in SBA deals and can help meet the equity injection requirement.","url":"https://dealroom.so/glossary/seller-financing-on-full-standby","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":"full-standby-agreement","term":"Full Standby Agreement","url":"https://dealroom.so/glossary/full-standby-agreement"},{"slug":"standby","term":"Standby","url":"https://dealroom.so/glossary/standby"},{"slug":"equity-injection","term":"Equity injection","url":"https://dealroom.so/glossary/equity-injection"}],"related_questions":[{"question":"What specific due diligence is needed for seller financing that is not on full standby?","url":"https://dealroom.so/for-lenders/questions/what-specific-due-diligence-is-needed-for-seller-financing-that-is-not-on-full-standby"},{"question":"What is the maximum allowed equity injection percentage that can come from seller financing on full standby?","url":"https://dealroom.so/for-lenders/questions/what-is-the-maximum-allowed-equity-injection-percentage-that-can-come-from-seller-financin"},{"question":"If a seller note is on full standby, when can the seller start receiving principal payments?","url":"https://dealroom.so/sba-7a/questions/if-a-seller-note-is-on-full-standby-when-can-the-seller-start-receiving-principal-payments"},{"question":"Under what conditions can a seller note on full standby be repaid early?","url":"https://dealroom.so/sba-7a/questions/under-what-conditions-can-a-seller-note-on-full-standby-be-repaid-early"},{"question":"Can a seller note on full standby still be secured by business assets?","url":"https://dealroom.so/sba-7a/questions/can-a-seller-note-on-full-standby-still-be-secured-by-business-assets"},{"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 — Seller Financing on Full Standby","url":"https://dealroom.so/glossary/seller-financing-on-full-standby","source_type":"DealRoom Data"}}