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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.

Common questions about Loan closing costs

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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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