I've been reading conflicting things and I'm not sure if it's due to a change in SOP or something else, so rather than confusing myself more, I was hoping to ask for some guidance.

I had a confusing call with a broker where he said if your escrow as a % of your purchase price goes from 15% to 5% (let's say the original IOI was 15% and the buyer wants to drop this to 5%), the buyer would need to put up considerable more of their own money. I was thinking back on our conversation and I then started questioning what he meant.

Let's say the purchase price is $8M, the seller will rollover $1M, the buyer will contribute $1.5M, and that leaves $5.5M to be financed. Of the $7M (price - rollover), let's say in scenario A $1,050 is held in escrow and scenario B $350k is held in escrow. I thought escrow holdbacks are eligible for SBA financing as long as it's not based on an earnout, maybe I'm wrong here?
In Scenario A vs B, is the only difference the seller will receive less money up front in A or are there other nuances involved?
Apologies, this is probably a simple question but I wanted to be a little more clear on escrow mechanics and when the seller actually receives funds. Thank you.