Real Ownership Scenarios
Scenario 2: SBA + Seller Financing
Layered structure that lowers cash to close.
Practical Explanation
SBA lends 90%, seller carries part of the buyer's 10% equity injection on full standby. The buyer brings 5% cash. Most efficient capital structure for first-time buyers with limited savings.
Real-World Example
$600,000 deal. SBA: $540,000. Seller standby note: $30,000. Buyer cash: $30,000.
Typical cash required
As low as 5% of purchase price.
Experience required
Same as standard SBA.
Advantages
- ✓Lowest cash to close
- ✓Seller stays partially invested
- ✓Predictable terms
Risks
- !Standby terms strict
- !Balloon payment to seller at standby end
- !More moving parts
Frequently Asked Questions
Will the lender allow it?
Most SBA preferred lenders do — confirm before signing the LOI.
Related guides
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