Glossary · Your money in the deal
In short
This agreement allows a seller or other subordinated creditor to receive interest payments, but no principal payments, until the SBA loan is repaid. It's a less restrictive form of standby than a full standby.
For seller notes counting as equity, the SBA might allow a partial standby if certain conditions are met, letting the seller collect interest. This can make the deal more attractive to a seller than a full standby. Your lender will guide you on the specific requirements.
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.
Figure out your down payment and equity injection
Tell us your purchase price and how you're funding the down payment — we'll sanity-check the equity injection and show what lenders will actually accept.
Free · No documents · Usually same-day