{"ok":true,"canonical_url":"https://dealroom.so/glossary/underwriting-costs","api_url":"https://dealroom.so/api/public/glossary/underwriting-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":"underwriting-costs","term":"Underwriting costs","group":"Doing the deal","definition":"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":"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.","url":"https://dealroom.so/glossary/underwriting-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":"lender-closing-fees","term":"Lender closing fees","url":"https://dealroom.so/glossary/lender-closing-fees"},{"slug":"appraisal","term":"Appraisal","url":"https://dealroom.so/glossary/appraisal"},{"slug":"environmental-consultant","term":"Environmental consultant","url":"https://dealroom.so/glossary/environmental-consultant"},{"slug":"due-diligence","term":"Due diligence","url":"https://dealroom.so/glossary/due-diligence"}],"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":"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 constitutes prudent lending standards for SBA 7(a) underwriting?","url":"https://dealroom.so/for-lenders/questions/what-constitutes-prudent-lending-standards-for-sba-7-a-underwriting"},{"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 — Underwriting costs","url":"https://dealroom.so/glossary/underwriting-costs","source_type":"DealRoom Data"}}