Glossary · Doing the deal
Broker fee
In short
This is the compensation paid to a business broker or M&A advisor for facilitating the sale of a business. It's typically a percentage of the sale price.
What it means in a deal
Broker fees are usually paid by the seller, but sometimes they can be structured into the overall deal costs, which might impact your total project costs. Ensure clarity on who pays what and that the fee structure is transparent before signing any agreements.
Official sources
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 Broker fee
- Can I use pre-closing expenses, like a business broker's fee, as part of my equity injection?
- Are there any other lender-specific fees beyond the SBA guaranty fee and ongoing servicing fee?
- Can the lender charge application fees or underwriting fees in addition to the SBA guaranty fee?
- What is the primary role of my business broker or M&A advisor in the SBA 7(a) loan process?
- Are there annual servicing fees or other recurring charges beyond the SBA servicing fee?
- Can the lender charge an additional "packaging fee" on top of the SBA fees?
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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