Glossary · Your money in the deal
In short
This is when the seller provides a loan for part of the purchase price, but you don't make any payments on it until the SBA loan is fully repaid. It counts towards your equity injection.
When a seller note is on full standby, it means all principal and interest payments are deferred for the entire term of the SBA 7(a) loan. This significantly strengthens your global cash flow, as you only have one debt payment. This type of seller financing is common in SBA deals and can help meet the equity injection requirement.
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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