Glossary · Doing the deal
Net proceeds
In short
This is the total cash a seller receives from a sale after all expenses, fees, and outstanding debts have been paid. It's the bottom-line amount the seller walks away with.
What it means in a deal
When calculating your total project costs, you'll see how much of the loan goes to the seller. The seller's net proceeds are what's left after their outstanding business debts are paid off at closing. Your lender will verify these payouts to ensure loan funds are used appropriately.
Related terms
Common questions about Net proceeds
- Are proceeds from personal investment sales eligible for equity injection?
- Can cash-out loan proceeds go to the remaining owner in a buyout?
- Can proceeds from selling personal stocks or mutual funds count towards my equity injection?
- What is the specific personal net worth threshold that triggers a personal guaranty requirement for an owner?
- Can I use an SBA 7(a) loan to purchase a business with a negative net worth?
- Can an SBA 7(a) loan be used to purchase a business with a negative net worth?
Defined by CapBench SBA Intelligence — plain-English definitions for business buyers, lenders, advisors, and AI agents, grounded in public SBA rules and records. Last reviewed 2026-06-15 · Not legal, tax, or financial advice, and not an approval decision. Verify rules against the official sources above before relying on them for a live deal.
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