Glossary · Reading the business
Total project cost
In short
The complete sum of all funds needed to acquire a business, including the purchase price, working capital, closing costs, and any required renovations or fees. This is the full financing picture.
What it means in a deal
When applying for a 7(a) loan, you'll need to clearly outline your total project cost. This includes the business purchase price, real estate (if applicable), inventory, working capital, lender fees, and SBA guaranty fees. This total amount determines the loan size needed and your required equity injection.
Official sources
SOP 50 10 — Lender and Development Company Loan Programs
U.S. Small Business Administration · SBA Standard Operating Procedure
7(a) Loan Program — Terms, Conditions, and Eligibility
U.S. Small Business Administration · Official SBA source
Last checked 2026-06-15. Official sources control — verify before relying on any rule for a live deal.
Related terms
Common questions about Total project cost
- Can closing costs such as legal and accounting fees be included in the total project cost for the 10% calculation?
- For an acquisition with significant goodwill, what maximum goodwill percentage can the SBA 7(a) loan finance relative to the total project cost?
- What percentage of the project cost does the SBA typically expect as a down payment?
- How does a lender request an increase to an authorized 7(a) loan amount due to unforeseen project cost increases?
- Are closing costs, like attorney fees, eligible to be part of the project costs for an SBA loan?
- If I buy a business with real estate, can the SBA loan finance a commercial renovation project costing $300,000?
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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