Clarification on new 7a rules (June 2025)

searcher profile

May 20, 2025

by a searcher from Washington University in St. Louis in St. Louis, MO, USA

A broker was explaining to me yesterday that the changes will require deals with any form of seller financing to be collateralized by the seller? Can anyone clarify and/or confirm I understood this correctly? How is this different from the current rules in place?
1
9
123
Replies
9
commentor profile
Reply by a lender
in Ponte Vedra Beach, FL 32082, USA
^redacted‌ happy to have a call to clarify. Only seller notes that are part of the 10% required equity will need to be on full standby for the life of SBA loan. There can be second plus notes structured differently.
commentor profile
Reply by a lender
from University of Iowa in Chicago, IL, USA
Agreed with Brittany. An additional point, any seller financing would need to be subordinate to the SBA loan position.
commentor profile
+7 more replies.
Join the discussion