Glossary · Doing the deal
Extraordinary Legal Fee
In short
Legal costs that go beyond typical transaction expenses due to unexpected complexities or disputes. These can significantly inflate your deal's closing costs.
What it means in a deal
In an SBA acquisition, extraordinary legal fees might arise from complex entity structures, extensive contract negotiations, or unforeseen legal issues with the target business. Budget for standard legal fees, but be prepared for potential additional costs if your due diligence uncovers red flags requiring specialized legal work.
Related terms
Common questions about Extraordinary Legal Fee
- What is the process for a lender to obtain SBA approval for extraordinary liquidation expenses?
- Are there any other lender-specific fees beyond the SBA guaranty fee and ongoing servicing fee?
- Can a lender include unapproved legal fees in a Universal Purchase Package (UPP)?
- Are pre-closing legal and accounting fees eligible to be counted towards my equity injection?
- Can the lender charge application fees or underwriting fees in addition to the SBA guaranty fee?
- Can professional fees I've already paid (e.g., legal, valuation) 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.
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