Glossary · Reading the business
Project costs
In short
This refers to the total funds needed to complete your business acquisition, including the purchase price, working capital, closing costs, and any required renovations or equipment.
What it means in a deal
When applying for an SBA loan, you must clearly itemize all project costs. This total determines your required equity injection and the maximum loan amount. Be thorough, as underestimating can lead to funding gaps or delays. Lenders will scrutinize this breakdown.
Related terms
Common questions about Project costs
- Are closing costs, like attorney fees, eligible to be part of the project costs for an SBA loan?
- What documentation is required to amend a 7(a) loan authorization for a change in project costs?
- What is the maximum percentage of project costs that can be funded by an SBA 7(a) loan?
- Can closing costs such as legal and accounting fees be included in the total project cost for the 10% calculation?
- How does a lender handle a 7(a) loan authorization amendment request for an increase in project costs post-closing?
- What percentage of the project cost does the SBA typically expect as a down payment?
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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