Glossary · Doing the deal
Closing cost
In short
Various fees and expenses incurred to finalize a business acquisition, beyond the purchase price. These costs include lender fees, legal fees, and appraisal fees, which you must budget for as part of total project costs.
What it means in a deal
Closing costs for an SBA 7(a) acquisition can include the SBA guaranty fee, lender packaging fee, legal fees for both buyer and lender, appraisal, environmental report, and title insurance. These are typically paid at closing and can significantly impact your required equity injection and overall deal funding. Get a detailed breakdown from your lender early.
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 Closing cost
- Can closing costs such as legal and accounting fees be included in the total project cost for the 10% calculation?
- Are closing costs, like attorney fees, eligible to be part of the project costs for an SBA loan?
- What factors primarily influence the premium cost of business life insurance?
- Can an SBA 7(a) loan cover closing costs associated with a business acquisition?
- Can an SBA 7(a) loan include funds for closing costs like attorney fees?
- Can the seller's payment of closing costs on my behalf count towards my equity injection?
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.
Line up financing while you're under LOI
Tell us the business, the price, and your timeline — we'll match you with lenders who close deals like yours and flag anything that stalls the process.
Free · No documents · Usually same-day
Backed by data on 1,000+ SBA lenders and 300,000+ funded deals. Your details go only to lending partners you ask to be matched with — never sold to advertisers.