{"ok":true,"canonical_url":"https://dealroom.so/glossary/soft-costs","api_url":"https://dealroom.so/api/public/glossary/soft-costs","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":"soft-costs","term":"Soft Costs","group":"Doing the deal","definition":"These are non-physical expenses in a project or acquisition, like legal, accounting, and consulting fees. They add to the total project cost but aren't tangible assets.","what_it_means":"In an SBA acquisition, soft costs are part of your Total Project Costs and can often be financed by the SBA loan. Keep detailed records of these expenses, as your lender will review them as part of the Use of Proceeds.","url":"https://dealroom.so/glossary/soft-costs","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"},{"slug":"13-cfr-part-120","title":"13 CFR Part 120 — Business Loans","official_url":"https://www.ecfr.gov/current/title-13/chapter-I/part-120","official_label":"View on eCFR","authority_tier":1,"publisher":"Office of the Federal Register","source_guide_url":"https://dealroom.so/sba-7a/sources/13-cfr-part-120"}],"related":[{"slug":"consulting-fee","term":"Consulting Fee","url":"https://dealroom.so/glossary/consulting-fee"},{"slug":"legal-fee","term":"Legal fee","url":"https://dealroom.so/glossary/legal-fee"},{"slug":"total-project-costs","term":"Total project costs","url":"https://dealroom.so/glossary/total-project-costs"},{"slug":"use-of-proceeds","term":"Use of proceeds","url":"https://dealroom.so/glossary/use-of-proceeds"}],"related_questions":[{"question":"Can a lender accept a \"soft offer\" for collateral in liquidation, or is a formal appraisal always required for disposition?","url":"https://dealroom.so/for-lenders/questions/can-a-lender-accept-a-soft-offer-for-collateral-in-liquidation-or-is-a-formal-appraisal-al"},{"question":"Are closing costs, like attorney fees, eligible to be part of the project costs for an SBA loan?","url":"https://dealroom.so/sba-7a/questions/are-closing-costs-like-attorney-fees-eligible-to-be-part-of-the-project-costs-for-an-sba-l"},{"question":"How does an insured's age affect business life insurance premium costs?","url":"https://dealroom.so/sba-7a/questions/how-does-an-insured-s-age-affect-business-life-insurance-premium-costs"},{"question":"Can an SBA 7(a) loan cover closing costs associated with a business acquisition?","url":"https://dealroom.so/sba-loans/basics/can-an-sba-7-a-loan-cover-closing-costs-associated-with-a-business-acquisition"},{"question":"Can an SBA 7(a) loan include funds for closing costs like attorney fees?","url":"https://dealroom.so/sba-loans/basics/can-an-sba-7-a-loan-include-funds-for-closing-costs-like-attorney-fees"},{"question":"Can an SBA 7(a) loan cover the costs of renovating a business space?","url":"https://dealroom.so/sba-loans/basics/can-an-sba-7-a-loan-cover-the-costs-of-renovating-a-business-space"}]},"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 — Soft Costs","url":"https://dealroom.so/glossary/soft-costs","source_type":"DealRoom Data"}}