Glossary · Doing the deal
Transaction costs
In short
These are all the fees and expenses associated with buying a business, beyond the purchase price itself. They include legal, accounting, appraisal, and loan-related fees.
What it means in a deal
Transaction costs can significantly add to your total project costs for a 7(a) loan. The SBA allows many of these costs to be financed, but you'll still have an equity injection based on the total. Get a clear breakdown early.
Official sources
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 Transaction costs
- Are closing costs, like attorney fees, eligible to be part of the project costs for an SBA loan?
- Who actually lends the money in an SBA 7(a) loan transaction?
- When is a business valuation required for a change of ownership transaction exceeding $500,000?
- When is a business appraisal required for a change of ownership transaction exceeding $500,000?
- How does an insured's age affect business life insurance premium costs?
- What specific documentation is required from the seller for a 7(a) change-of-ownership transaction?
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.
Line up financing while you're under LOI
Tell us the business, the price, and your timeline — we'll match you with lenders who close deals like yours and flag anything that stalls the process.
Free · No documents · Usually same-day
Backed by data on 1,000+ SBA lenders and 300,000+ funded deals. Your details go only to lending partners you ask to be matched with — never sold to advertisers.