Acquisition Calculator
Seller Note Builder
Standby + amortization + optional balloon, with total cost math. Defaults match the SBA full-standby rule (24 months, no principal or interest accrual) for seller notes counting toward equity injection.
Principal carried by the seller
Typical seller note: 6–9%
From close of deal to final payment
No principal/interest during standby. SBA full-standby rule: 24 months.
Lump-sum payoff before end of term
The SBA full-standby rule
Under SBA SOP 50 10 8 (effective June 1, 2025), a seller note can count toward the buyer's required 10% equity injection only if it sits on full standby — no principal, no interest — for the entire life of the SBA loan. The seller note can cover at most 50% of the equity injection (5% of total project cost), and the buyer must still inject at least 5% in cash from non-borrowed sources.
After the SBA loan is paid off, the seller note can be repaid on its remaining schedule. How seller financing actually works.
When a balloon makes sense
Balloons compress the amortization schedule into a shorter window with a lump-sum payoff at the end. They lower monthly payments during the term but require either a refinance or a cash-on-hand payoff at maturity. Use balloons when you expect to refinance into a conventional loan after building post-close performance, or when the seller wants payoff certainty within a fixed window.