Glossary · Doing the deal
Seller Consulting Agreement
In short
An agreement where the seller remains with the business for a period after the sale, typically to assist with the transition, provide training, or consult. This is common in small business acquisitions.
What it means in a deal
This agreement allows for a smooth handover of knowledge and customer relationships. The SBA requires that the seller's compensation under this agreement is market rate and not disguised debt. Ensure the agreement clearly defines the seller's role, duration, and compensation, and that you, the buyer, retain full managerial control.
Official sources
13 CFR Part 120 — Business Loans
Office of the Federal Register · Federal regulation
SOP 50 10 — Lender and Development Company Loan Programs
U.S. Small Business Administration · SBA Standard Operating Procedure
Last checked 2026-06-15. Official sources control — verify before relying on any rule for a live deal.
Related terms
Common questions about Seller Consulting Agreement
- Can a seller's post-closing consulting agreement influence the standby status of their seller note?
- Can the seller's post-closing consulting agreement influence the standby status of their seller note?
- Does a seller's post-closing consulting agreement influence their standby note status with the SBA?
- What factors should a lender assess regarding a seller's post-closing consulting agreement in a change of ownership?
- What specific limitations must a lender impose on a seller's post-closing consulting agreement to ensure it does not imply retained control or undue influence?
- Does a full standby seller note prevent the seller from receiving any consulting fees from the business post-acquisition?
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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