My understanding is that the SBA allows you to use seller financing as 5% equity (i.e., cuts your normal 10% equity requirement in half) if the seller goes on 10-year standby for that portion. Could anyone who has successfully used this provision share how they structured this? Interest accrues for 10 years and then a lump-sum payment at the end of year 10? Amortization starting at the end of 10 years? Curious to hear how you thought about it and what structures worked for your sellers.
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