Glossary · Doing the deal
Soft Costs
In short
These are non-physical expenses in a project or acquisition, like legal, accounting, and consulting fees. They add to the total project cost but aren't tangible assets.
What it means in a deal
In an SBA acquisition, soft costs are part of your Total Project Costs and can often be financed by the SBA loan. Keep detailed records of these expenses, as your lender will review them as part of the Use of Proceeds.
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 Soft Costs
- Can a lender accept a "soft offer" for collateral in liquidation, or is a formal appraisal always required for disposition?
- Are closing costs, like attorney fees, eligible to be part of the project costs for an SBA loan?
- How does an insured's age affect business life insurance premium costs?
- 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 the costs of renovating a business space?
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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