{"ok":true,"canonical_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","api_url":"https://dealroom.so/api/public/questions/are-closing-costs-like-attorney-fees-eligible-to-be-part-of-the-project-costs-for-an-sba-l","question":"Are closing costs, like attorney fees, eligible to be part of the project costs for an SBA loan?","topic":"What counts toward the 10%","audience":"borrower","bot_mode":"buyer","short_answer":"Yes, reasonable and customary closing costs, including attorney fees, appraisals, and environmental reports, are eligible to be included in the total project costs financed by an SBA 7(a) loan.","rule":"The total project cost for an SBA 7(a) acquisition loan typically includes the business purchase price, real estate (if applicable), working capital, and eligible closing costs. These costs are a legitimate part of the transaction and can be financed as part of the loan, rather than counting towards the buyer's equity injection.","example":"A buyer is acquiring a business for $700,000. In addition to the purchase price, there are $25,000 in closing costs (legal, appraisal, environmental). The SBA loan can be for up to $725,000, and the buyer's equity injection would be 10% of this total project cost, or $72,500.","what_lenders_check":"Lenders will verify that all closing costs are reasonable, customary, and directly related to the acquisition. They require detailed breakdowns and invoices for these costs to ensure compliance with SBA guidelines and prevent excessive financing of ineligible expenses.","required_facts":["Closing costs","Attorney fees","Total project costs","Eligible expenses"],"source_families":["SOP 50 10 - Lender and Development Company Loan Programs","13 CFR Part 120 - Business Loans","7(a) Loan Program Terms, Conditions, and Eligibility"],"official_sources":[{"title":"SOP 50 10 - Lender and Development Company Loan Programs","url":"https://www.sba.gov/sites/default/files/2025-05/SOP%2050%2010%208%20Technical%20Updates%20effective%206.1.2025.docx"},{"title":"13 CFR Part 120 - Business Loans","url":"https://www.ecfr.gov/current/title-13/chapter-I/part-120"},{"title":"7(a) Loan Program Terms, Conditions, and Eligibility","url":"https://www.sba.gov/partners/lenders/7a-loan-program/terms-conditions-eligibility"}],"related_questions":[{"question":"Can renovation costs for an acquired business premises count towards my required 10% equity injection?","url":"https://dealroom.so/sba-7a/questions/can-renovation-costs-for-an-acquired-business-premises-count-towards-my-required-10-equity"},{"question":"Can the fair market value of equipment I already own and contribute to the acquired business count towards my equity?","url":"https://dealroom.so/sba-7a/questions/can-the-fair-market-value-of-equipment-i-already-own-and-contribute-to-the-acquired-busine"},{"question":"Can sweat equity or future services I provide to the business count towards the required equity injection?","url":"https://dealroom.so/sba-7a/questions/can-sweat-equity-or-future-services-i-provide-to-the-business-count-towards-the-required-e"},{"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":"Besides cash, what non-cash assets can I contribute to meet the 10% equity injection for an $800,000 acquisition?","url":"https://dealroom.so/sba-7a/questions/besides-cash-what-non-cash-assets-can-i-contribute-to-meet-the-10-equity-injection-for-an-"},{"question":"Can a substantial pre-paid rent deposit on a commercial lease count towards the equity injection for a business acquisition?","url":"https://dealroom.so/sba-7a/questions/can-a-substantial-pre-paid-rent-deposit-on-a-commercial-lease-count-towards-the-equity-inj"}],"related_terms":[{"term":"Attorney Fees","url":"https://dealroom.so/glossary/attorney-fees"},{"term":"Project costs","url":"https://dealroom.so/glossary/project-costs"},{"term":"Closing Costs","url":"https://dealroom.so/glossary/closing-costs"},{"term":"Total project costs","url":"https://dealroom.so/glossary/total-project-costs"},{"term":"Loan closing costs","url":"https://dealroom.so/glossary/loan-closing-costs"},{"term":"Lender closing fees","url":"https://dealroom.so/glossary/lender-closing-fees"}],"related_tools":[{"name":"SBA 7(a) payment & fee calculator","url":"https://dealroom.so/sba-7a/calculator"},{"name":"Find an active SBA 7(a) lender","url":"https://dealroom.so/lenders"}],"data_freshness":{"last_reviewed":"2026-06-13","sba_rule_sources_checked_through":"2026-06-13"},"citation":{"label":"DealRoom.so SBA 7(a) Q&A","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","source_type":"DealRoom Q&A"},"caveats":["Grounded in the current SBA rulebook; verify against official sources before relying on it for a live deal.","Not legal, tax, or financial advice and not an approval decision."]}