Glossary · Doing the deal
Closing Costs
In short
These are fees and expenses incurred to finalize a business acquisition and loan. They include legal fees, appraisal costs, and SBA guaranty fees.
What it means in a deal
Closing costs are a significant part of your total project costs and are typically rolled into the SBA loan or paid out of your equity injection. You'll see costs for legal review, appraisals, environmental reports, and the SBA's upfront guaranty fee. Factor these into your funding plan.
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 Costs
- Are closing costs, like attorney fees, eligible to be part of the project costs for an SBA loan?
- 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?
- Can an SBA 7(a) loan cover closing costs and professional fees for a business acquisition?
- Can closing costs such as legal and accounting fees be included in the total project cost for the 10% calculation?
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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