Seeking Advice On Seller Financing Options

I’m under an active LOI and exploring creative seller-financing options given recent changes in the deal. We originally planned to acquire the business with an SBA loan. The company is owned by two brothers—one active operator and one silent partner. The operating brother recently passed away unexpectedly, which created operational disruptions. As a result, Q3 performance came in significantly down, though the underlying issues have since been corrected. Q4 is expected to return to steady-state or better. Because the business is small, the Q3 decline had a meaningful impact on valuation. The original purchase price was ~$1M, but with current financials, SBA financing now supports closer to ~$500k. Given the circumstances, we believe the best path forward may be a fully seller-financed structure. The surviving brother has a full-time job and does not want to step into an operating role. Under normal conditions, the business would likely be pulled off the market until performance stabilizes. The alternative options are we see is are are sell to our team or hire an operator to run the business. Half of the business will pass to the estate of the brother who passed. There is an understandable emotional preference for a valuation closer to 2024 levels. Our thought is to propose full seller financing at a higher valuation with a below-market interest rate, which could bridge the gap between financial reality and the sellers’ expectations. Has anyone structured a similar deal, or have advice on how best to present this structure to the seller and estate?