Now that SOPredactedis live, passive investor equity is a limited source. It shares the 50% cap with seller standby and any other standby debt, and if that money is used to meet the required injection, those investors are locked out of everything but tax distributions until the 7(a) is paid off. On a $2.5M project that means at least $125k has to come from unlimited sources. The model where investors fund 80 to 90 percent of the injection is done. What we're planning around is a two-tier stack: satisfy the required injection with sponsor cash plus at most half from limited sources, then raise the rest above the injection line where normal distributions still work. Pref lives in the upper tier. Curious what others are seeing: - Are lenders actually approving two-tier stacks, or getting conservative on them? - Anyone accruing pref on the injection layer, and how are you papering it so it doesn't get recharacterized as debt? - Anyone just moving the bigger deals off SBA entirely? Happy to compare notes offline if you'd rather not post publicly.