{"ok":true,"canonical_url":"https://dealroom.so/glossary/seller-s-equity","api_url":"https://dealroom.so/api/public/glossary/seller-s-equity","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-s-equity","term":"Seller's equity","group":"Your money in the deal","definition":"The portion of the purchase price the seller leaves in the business as a loan to the buyer. It reduces your cash injection and shows the seller's confidence.","what_it_means":"In an SBA 7(a) deal, seller's equity often takes the form of a seller note. This note is typically subordinated to the SBA loan, meaning the seller only gets paid after the SBA lender. It can help bridge financing gaps and is often required by SBA lenders to meet equity injection requirements. Negotiate the terms (interest rate, payment schedule, standby period) carefully.","url":"https://dealroom.so/glossary/seller-s-equity","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":"equity-injection","term":"Equity injection","url":"https://dealroom.so/glossary/equity-injection"},{"slug":"seller-note","term":"Seller note","url":"https://dealroom.so/glossary/seller-note"},{"slug":"standby","term":"Standby","url":"https://dealroom.so/glossary/standby"},{"slug":"subordinated-debt","term":"Subordinated Debt","url":"https://dealroom.so/glossary/subordinated-debt"}],"related_questions":[{"question":"Can a seller note be used to finance the entire seller's equity contribution to the buyer's business?","url":"https://dealroom.so/sba-7a/questions/can-a-seller-note-be-used-to-finance-the-entire-seller-s-equity-contribution-to-the-buyer-"},{"question":"Can the seller's contribution of working capital count towards my minimum equity injection?","url":"https://dealroom.so/sba-7a/questions/can-the-seller-s-contribution-of-working-capital-count-towards-my-minimum-equity-injection"},{"question":"Can the seller's payment of closing costs on my behalf count towards my equity injection?","url":"https://dealroom.so/sba-7a/questions/can-the-seller-s-payment-of-closing-costs-on-my-behalf-count-towards-my-equity-injection"},{"question":"What specific conditions make a seller's standby note eligible to count towards my equity injection?","url":"https://dealroom.so/sba-7a/questions/what-specific-conditions-make-a-seller-s-standby-note-eligible-to-count-towards-my-equity-"},{"question":"Can the seller's investment in the business immediately prior to sale count towards my equity injection?","url":"https://dealroom.so/sba-7a/questions/can-the-seller-s-investment-in-the-business-immediately-prior-to-sale-count-towards-my-equ"},{"question":"How does a lender verify a seller note's full standby status for 7(a) equity injection compliance?","url":"https://dealroom.so/for-lenders/questions/how-does-a-lender-verify-a-seller-note-s-full-standby-status-for-7-a-equity-injection-comp"}]},"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's equity","url":"https://dealroom.so/glossary/seller-s-equity","source_type":"DealRoom Data"}}