{"ok":true,"canonical_url":"https://dealroom.so/glossary/total-cost-of-credit","api_url":"https://dealroom.so/api/public/glossary/total-cost-of-credit","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":"total-cost-of-credit","term":"Total Cost of Credit","group":"The loan itself","definition":"The complete financial expense of taking out a loan, encompassing all interest, fees, and charges over the loan's life. This is the bottom-line dollar figure for your borrowing.","what_it_means":"For an SBA 7(a) acquisition loan, the total cost of credit includes the principal, all interest payments, the SBA guaranty fee, ongoing servicing fees, and any lender processing or packaging fees. Demand a detailed amortization schedule and a full list of all fees from your lender to understand your total financial outlay.","url":"https://dealroom.so/glossary/total-cost-of-credit","official_sources":[],"related":[{"slug":"annual-percentage-rate","term":"Annual Percentage Rate","url":"https://dealroom.so/glossary/annual-percentage-rate"},{"slug":"finance-charge","term":"Finance Charge","url":"https://dealroom.so/glossary/finance-charge"},{"slug":"guaranty-fee","term":"Guaranty fee","url":"https://dealroom.so/glossary/guaranty-fee"},{"slug":"lender-closing-costs","term":"Lender closing costs","url":"https://dealroom.so/glossary/lender-closing-costs"}],"related_questions":[{"question":"Can closing costs such as legal and accounting fees be included in the total project cost for the 10% calculation?","url":"https://dealroom.so/sba-7a/questions/can-closing-costs-such-as-legal-and-accounting-fees-be-included-in-the-total-project-cost-"},{"question":"For an acquisition with significant goodwill, what maximum goodwill percentage can the SBA 7(a) loan finance relative to the total project cost?","url":"https://dealroom.so/sba-7a/questions/for-an-acquisition-with-significant-goodwill-what-maximum-goodwill-percentage-can-the-sba-"},{"question":"What factors primarily influence the premium cost of business life insurance?","url":"https://dealroom.so/sba-7a/questions/what-factors-primarily-influence-the-premium-cost-of-business-life-insurance"},{"question":"Can an SBA 7(a) loan cover the cost of inventory for a business?","url":"https://dealroom.so/sba-loans/basics/can-an-sba-7-a-loan-cover-the-cost-of-inventory-for-a-business"},{"question":"Can an SBA 7(a) loan cover the cost of a business valuation or appraisal?","url":"https://dealroom.so/sba-7a/questions/can-an-sba-7-a-loan-cover-the-cost-of-a-business-valuation-or-appraisal"},{"question":"What percentage of the project cost does the SBA typically expect as a down payment?","url":"https://dealroom.so/sba-loans/basics/what-percentage-of-the-project-cost-does-the-sba-typically-expect-as-a-down-payment"}]},"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 — Total Cost of Credit","url":"https://dealroom.so/glossary/total-cost-of-credit","source_type":"DealRoom Data"}}