{"ok":true,"canonical_url":"https://dealroom.so/glossary/seller-note","api_url":"https://dealroom.so/api/public/glossary/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":"seller-note","term":"Seller note","aka":"seller financing","group":"Your money in the deal","definition":"Part of the price the seller lets you pay over time instead of at closing. Common, and a good sign the seller believes in the business.","what_it_means":"A seller note is a private loan from the seller to you, structured as part of the acquisition price. Instead of receiving the full price at closing, the seller takes monthly payments over a term you negotiate. For an SBA deal, a seller note on full standby can count toward your 10% injection — but the seller can't receive any payments during the life of the SBA loan, which the seller must acknowledge in writing on Form 155. Sellers who push back on standby are often signaling concern about the business's ability to service the combined debt.","url":"https://dealroom.so/glossary/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"}],"related":[{"slug":"standby","term":"Standby","url":"https://dealroom.so/glossary/standby"},{"slug":"form-155","term":"Form 155","url":"https://dealroom.so/glossary/form-155"},{"slug":"equity-injection","term":"Equity injection","url":"https://dealroom.so/glossary/equity-injection"},{"slug":"balloon-payment","term":"Balloon payment","url":"https://dealroom.so/glossary/balloon-payment"}],"related_questions":[{"question":"Besides cash and seller notes, what other buyer contributions qualify for equity?","url":"https://dealroom.so/sba-7a/questions/besides-cash-and-seller-notes-what-other-buyer-contributions-qualify-for-equity"},{"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":"Can a seller's post-closing consulting agreement influence the standby status of their seller note?","url":"https://dealroom.so/sba-7a/questions/can-a-seller-s-post-closing-consulting-agreement-influence-the-standby-status-of-their-sel"},{"question":"Can the seller's post-closing consulting agreement influence the standby status of their seller note?","url":"https://dealroom.so/sba-7a/questions/can-the-seller-s-post-closing-consulting-agreement-influence-the-standby-status-of-their-s"},{"question":"Can the seller receive interest payments on a fully subordinated seller note during the SBA loan term?","url":"https://dealroom.so/sba-7a/questions/can-the-seller-receive-interest-payments-on-a-fully-subordinated-seller-note-during-the-sb"},{"question":"What is the required duration of a full standby seller note?","url":"https://dealroom.so/sba-7a/questions/what-is-the-required-duration-of-a-full-standby-seller-note"}]},"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 note","url":"https://dealroom.so/glossary/seller-note","source_type":"DealRoom Data"}}