I'd love to get some examples of how others have structured seller notes on full standby to the SBA. I have the following questions:
- What is the typical term? Is it most common to simply have a balloon payment at the end of the SBA term? Is it typical to do a longer term than the SBA loan and amortize once SBA is extinguished?
- Simple vs. Compound? Which is more common?
- For compound - is it only the interest that typically compounds, or is it the entire amount (principle + interest)?