Glossary · The loan itself
Eligible closing cost
In short
Specific expenses associated with finalizing your SBA loan and acquisition that can be included in the total loan amount. These reduce your out-of-pocket expenses.
What it means in a deal
The SBA defines which closing costs are "eligible" to be financed within the 7(a) loan, such as the upfront guaranty fee, packaging fees, environmental reviews, and legal fees. These are distinct from your equity injection. Your lender will provide a detailed breakdown, ensuring compliance with SBA rules.
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 Eligible 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?
- Are pre-closing legal and accounting fees eligible to be counted towards my equity injection?
- Can an existing business with significant negative working capital at closing still be eligible for a 7(a) acquisition 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?
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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