Glossary · Your money in the deal
Total project costs
In short
Purchase price plus fees, closing costs, and working capital. The 10% injection is measured against this number, which runs higher than the price alone.
What it means in a deal
When lenders size your required injection at 10%, they're using total project costs — which can run 5–10% above the stated purchase price once you add the guaranty fee, lender origination fee, working capital, and professional fees. If a business is listed at $1M, your actual project costs might be $1.05–1.10M, meaning you need $105–110K in injection, not $100K. Get the full project cost estimate from your lender before you finalize your offer.
Official sources
SOP 50 10 — Lender and Development Company Loan Programs
U.S. Small Business Administration · SBA Standard Operating Procedure
Last checked 2026-06-16. Official sources control — verify before relying on any rule for a live deal.
Related terms
Common questions about Total project costs
- Can closing costs such as legal and accounting fees be included in the total project cost for the 10% calculation?
- 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?
- How does a lender handle a 7(a) loan authorization amendment request for an increase in project costs post-closing?
- For an acquisition with significant goodwill, what maximum goodwill percentage can the SBA 7(a) loan finance relative to the total project cost?
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 2026-06-16 · 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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