{"ok":true,"canonical_url":"https://dealroom.so/glossary/pre-closing-expenses","api_url":"https://dealroom.so/api/public/glossary/pre-closing-expenses","data_freshness":{"sba_records_through":"2026-05-31","fdic_records_through":"2026-03-31","dealroom_last_updated":"2026-06-15","timezone":"America/Chicago"},"source_summary":["Public SBA 7(a) loan records","FDIC institution data","DealRoom lender and franchise enrichment"],"term":{"slug":"pre-closing-expenses","term":"Pre-closing expenses","group":"Doing the deal","definition":"These are costs you pay before the loan officially closes, like appraisal fees, environmental reports, or legal fees. You need to budget for these as they're often out-of-pocket.","what_it_means":"Many pre-closing expenses are part of your equity injection or total project costs, but you pay them directly before closing. Track these carefully as proof of funds may be required, and they contribute to your overall investment.","url":"https://dealroom.so/glossary/pre-closing-expenses","official_sources":[{"slug":"sop-50-10","title":"SOP 50 10 — Lender and Development Company Loan Programs","official_url":"https://www.sba.gov/document/sop-50-10-lender-development-company-loan-programs","official_label":"View on SBA.gov","authority_tier":2,"publisher":"U.S. Small Business Administration","source_guide_url":"https://dealroom.so/sba-7a/sources/sop-50-10"}],"related":[{"slug":"transaction-costs","term":"Transaction costs","url":"https://dealroom.so/glossary/transaction-costs"},{"slug":"lender-closing-costs","term":"Lender closing costs","url":"https://dealroom.so/glossary/lender-closing-costs"},{"slug":"equity-injection","term":"Equity injection","url":"https://dealroom.so/glossary/equity-injection"},{"slug":"out-of-pocket","term":"Out of pocket","url":"https://dealroom.so/glossary/out-of-pocket"}],"related_questions":[{"question":"Which pre-closing business expenses can count towards equity?","url":"https://dealroom.so/sba-7a/questions/which-pre-closing-business-expenses-can-count-towards-equity"},{"question":"Can I use pre-closing expenses, like a business broker's fee, as part of my equity injection?","url":"https://dealroom.so/sba-7a/questions/can-i-use-pre-closing-expenses-like-a-business-broker-s-fee-as-part-of-my-equity-injection"},{"question":"Can working capital be used for unexpected business expenses after closing?","url":"https://dealroom.so/sba-7a/questions/can-working-capital-be-used-for-unexpected-business-expenses-after-closing"},{"question":"Are pre-closing legal and accounting fees eligible to be counted towards my equity injection?","url":"https://dealroom.so/sba-7a/questions/are-pre-closing-legal-and-accounting-fees-eligible-to-be-counted-towards-my-equity-injecti"},{"question":"If I contribute inventory purchased pre-closing for the acquired business, can it count as equity?","url":"https://dealroom.so/sba-7a/questions/if-i-contribute-inventory-purchased-pre-closing-for-the-acquired-business-can-it-count-as-"},{"question":"Can pre-closing legal and accounting fees associated with the acquisition be counted towards my equity injection?","url":"https://dealroom.so/sba-7a/questions/can-pre-closing-legal-and-accounting-fees-associated-with-the-acquisition-be-counted-towar"}]},"caveats":["Definitions represent DealRoom's plain-English interpretation for buyers; verify regulatory terms against the official SBA and eCFR sources listed.","Not legal, tax, or financial advice, and not an SBA eligibility determination."],"citation":{"label":"DealRoom.so Glossary — Pre-closing expenses","url":"https://dealroom.so/glossary/pre-closing-expenses","source_type":"DealRoom Data"}}