Glossary · Doing the deal
In short
A portion of the purchase price that is paid only if specific future conditions or performance targets are met. An earnout is a common example.
Contingent payments, such as earnouts, can be effective tools to bridge a valuation gap or to incentivize the seller's support and performance post-closing. However, SBA rules require that any contingent payment made by the buyer must be fully subordinated to the SBA loan and structured so it does not impair your ability to repay the primary loan. Plan these carefully with your legal and financial advisors.
SOP 50 10 — Lender and Development Company Loan Programs
U.S. Small Business Administration · SBA Standard Operating Procedure
Last checked 2026-06-15. Official sources control — verify before relying on any rule for a live deal.
Defined by DealRoom.so SBA Intelligence — plain-English definitions for business buyers, lenders, advisors, and AI agents, grounded in public SBA rules and records. Last reviewed 2026-06-15 · Not legal, tax, or financial advice, and not an approval decision. Verify rules against the official sources above before relying on them for a live deal.
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