Glossary · Doing the deal
In short
The portion of the purchase price specifically allocated to the seller for agreeing not to compete. This payment is typically financed as part of your SBA 7(a) loan.
When structuring the deal, a specific amount is often assigned to the non-compete agreement. This payment is part of the total project costs and can be financed through the SBA loan, up to a maximum of $500,000. It's a key component for tax purposes and lender approval.
13 CFR Part 120 — Business Loans
Office of the Federal Register · Federal regulation
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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