Glossary · Doing the deal
In short
When the seller finances a portion of the purchase price, acting as a lender to the buyer. This reduces the cash you need upfront and shows the seller's confidence in the business.
In an SBA 7(a) acquisition, seller's financing often serves as part of your required equity injection. The SBA requires this financing to be on "full standby" for the life of the SBA loan, meaning the seller cannot receive payments until the SBA loan is fully repaid. Negotiate this carefully, as it impacts the seller's cash flow.
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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