{"ok":true,"canonical_url":"https://dealroom.so/sba-7a/questions/what-are-the-requirements-for-the-seller-for-an-sba-7-a-business-acquisition-loan","api_url":"https://dealroom.so/api/public/questions/what-are-the-requirements-for-the-seller-for-an-sba-7-a-business-acquisition-loan","question":"What are the requirements for the seller for an SBA 7(a) business acquisition loan?","topic":"Seller requirements","audience":"borrower","bot_mode":"buyer","short_answer":"The seller must be current on all government obligations, be willing to fully divest, and potentially provide a standby note.","rule":"The seller cannot be debarred from federal programs. They must fully divest ownership and management interest in the business being sold. If a seller note is involved, it must adhere to SBA standby requirements to count toward the buyer's equity.","example":"The seller of a business for $700,000 must certify they have no outstanding federal defaults and will completely exit the business after the sale. If they provide a $70,000 seller note, it must be on full standby.","what_lenders_check":"Lenders verify the seller's eligibility, ensure a complete change of ownership, and confirm that any seller financing complies with SBA standby requirements to prevent conflicts of interest or improper financial arrangements.","required_facts":[],"source_families":["SOP 50 10 - Lender and Development Company Loan Programs","SBA Form 1919 - Borrower Information Form","13 CFR Part 120 - Business Loans"],"official_sources":[{"title":"SOP 50 10 - Lender and Development Company Loan Programs","url":"https://www.sba.gov/sites/default/files/2025-05/SOP%2050%2010%208%20Technical%20Updates%20effective%206.1.2025.docx"},{"title":"SBA Form 1919 - Borrower Information Form","url":"https://www.sba.gov/sites/default/files/2025-03/2025.02.27%20Form%201919%20-%20Updates%20%28FINAL%29_03-12-2025%20%281%29.pdf"},{"title":"13 CFR Part 120 - Business Loans","url":"https://www.ecfr.gov/current/title-13/chapter-I/part-120"}],"related_questions":[],"related_terms":[{"term":"SBA 7(a) loan","url":"https://dealroom.so/glossary/sba-7-a-loan"},{"term":"7(a) loan","url":"https://dealroom.so/glossary/7a-loan"},{"term":"SBA 7(a) Loan Program","url":"https://dealroom.so/glossary/sba-7-a-loan-program"},{"term":"SBA 7(a) loan guaranty","url":"https://dealroom.so/glossary/sba-7-a-loan-guaranty"},{"term":"SBA 7(a) program","url":"https://dealroom.so/glossary/sba-7-a-program"},{"term":"Standard 7(a) loan","url":"https://dealroom.so/glossary/standard-7-a-loan"}],"related_tools":[{"name":"SBA 7(a) payment & fee calculator","url":"https://dealroom.so/sba-7a/calculator"},{"name":"Find an active SBA 7(a) lender","url":"https://dealroom.so/lenders"}],"data_freshness":{"last_reviewed":"2026-06-13","sba_rule_sources_checked_through":"2026-06-13"},"citation":{"label":"DealRoom.so SBA 7(a) Q&A","url":"https://dealroom.so/sba-7a/questions/what-are-the-requirements-for-the-seller-for-an-sba-7-a-business-acquisition-loan","source_type":"DealRoom Q&A"},"caveats":["Grounded in the current SBA rulebook; verify against official sources before relying on it for a live deal.","Not legal, tax, or financial advice and not an approval decision."]}