Glossary · Your money in the deal
In short
A loan from the seller to the buyer, structured to be repaid only after the primary SBA loan. This arrangement helps bridge financing gaps and can reduce your required cash injection, making a deal more accessible.
For an SBA 7(a) loan, any seller note must be on 'full standby,' meaning no payments (principal or interest) can be made until the SBA loan is repaid in full. This strengthens the business's cash flow for servicing the SBA debt and is a key component of your equity injection calculation.
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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