Glossary · The loan itself
Loan closing costs
In short
These are the various fees and expenses you pay at the loan closing to finalize your SBA 7(a) loan. As a buyer, you care because these costs are part of your total project costs and affect your required equity injection.
What it means in a deal
SBA loan closing costs typically include the SBA upfront guaranty fee, lender closing costs (packaging, legal, environmental, appraisal fees), and title/escrow fees. These costs are usually financed into the SBA loan but still count towards the total project cost, impacting the minimum cash injection you need to bring to the table. Make sure your pro forma includes all of these.
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 Loan 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 an SBA 7(a) loan cover closing costs and professional fees for a business acquisition?
- Can the seller's payment of closing costs on my behalf count towards my equity injection?
- What are the typical closing costs and fees a buyer should expect when getting an SBA 7(a) acquisition loan?
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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