Glossary · Doing the deal
In short
This is an agreement where the seller stays on for a period after closing to provide consulting services to the buyer. It's often used to ensure a smooth transition of operations and customer relationships.
A Post-Closing Consulting Agreement can be structured to support the buyer's transition, but the SBA has strict rules. Payments to the seller under such an agreement cannot be disguised debt or excess compensation; they must be for actual, market-rate services. Ensure the agreement's terms are reasonable and documented to avoid issues with the SBA.
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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