Below is the seller financing section of a template LOI proposed by broker. I am trying to get the seller note as equity consideration for SBA. Am I right to assume that a balloon payment will not meet the criteria. Also, is it standard for a seller note to ask for promissory note, personal guarantee and life insurance policy?

Seller shall provide $XX of “Seller Financing”. The Seller Financing will be evidenced by a promissory note. It will have a XX-month stand-by period in accordance during which time the interest will accrue, and no interest or principal will be paid, followed by a] yy-month amortization during which time the adjusted principal and interest shall be paid monthly, with a balloon payment of all remaining principal and interest due at the end of the [term] year ([] month)] after Closing. The annual interest rate shall be ______ percent (%). The Seller Financing will be subordinated to the Senior Debt, if any. The Seller Financing is subject to approval by Seller following a review of Buyer’s credit qualifications and personal financial statement. It will be secured by the Purchased Assets, a personal guaranty of payment by the Buyer of the Seller Financing in accordance with the terms of the promissory note, a UCC Financing Statement, and a life insurance policy purchased by and on the Buyer in favor of the Seller. The Seller shall also have the right to receive the company’s quarterly financials while the Seller Financing is outstanding.]