Glossary · Doing the deal
Underwriting costs
In short
These are expenses the lender incurs to evaluate your loan application, assess risk, and ensure compliance. They cover due diligence on the borrower and business.
What it means in a deal
Underwriting costs can include credit reports, business valuations, appraisals, and environmental assessments. These are typically part of your total project costs. Factor them into your initial financial planning and review them carefully.
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 Underwriting costs
- 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?
- What constitutes prudent lending standards for SBA 7(a) underwriting?
- 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.
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.