{"ok":true,"canonical_url":"https://dealroom.so/glossary/transaction-costs","api_url":"https://dealroom.so/api/public/glossary/transaction-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":"transaction-costs","term":"Transaction costs","group":"Doing the deal","definition":"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":"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.","url":"https://dealroom.so/glossary/transaction-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"}],"related":[{"slug":"pre-closing-expenses","term":"Pre-closing expenses","url":"https://dealroom.so/glossary/pre-closing-expenses"},{"slug":"lender-closing-costs","term":"Lender closing costs","url":"https://dealroom.so/glossary/lender-closing-costs"},{"slug":"packaging-fee","term":"Packaging fee","url":"https://dealroom.so/glossary/packaging-fee"},{"slug":"legal-fee","term":"Legal fee","url":"https://dealroom.so/glossary/legal-fee"}],"related_questions":[{"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":"Who actually lends the money in an SBA 7(a) loan transaction?","url":"https://dealroom.so/sba-loans/basics/who-actually-lends-the-money-in-an-sba-7-a-loan-transaction"},{"question":"When is a business valuation required for a change of ownership transaction exceeding $500,000?","url":"https://dealroom.so/for-lenders/questions/when-is-a-business-valuation-required-for-a-change-of-ownership-transaction-exceeding-500-"},{"question":"When is a business appraisal required for a change of ownership transaction exceeding $500,000?","url":"https://dealroom.so/for-lenders/questions/when-is-a-business-appraisal-required-for-a-change-of-ownership-transaction-exceeding-500-"},{"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":"What specific documentation is required from the seller for a 7(a) change-of-ownership transaction?","url":"https://dealroom.so/for-lenders/questions/what-specific-documentation-is-required-from-the-seller-for-a-7-a-change-of-ownership-tran"}]},"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 — Transaction costs","url":"https://dealroom.so/glossary/transaction-costs","source_type":"DealRoom Data"}}