Glossary · Your money in the deal
In short
These are conditions under which a seller note or other debt from an owner is subordinated to the SBA loan. This means the SBA lender gets paid first.
If the seller is financing a portion of the deal, their loan to you might be subject to standby terms, meaning they can't be paid principal or interest until the SBA loan is repaid, or under specific conditions. This strengthens the SBA loan's position and reduces the risk for the lender. This is often an "equity injection" substitute.
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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