{"ok":true,"canonical_url":"https://dealroom.so/sba-7a/questions/are-pre-closing-legal-and-accounting-fees-eligible-to-be-counted-towards-my-equity-injecti","api_url":"https://dealroom.so/api/public/questions/are-pre-closing-legal-and-accounting-fees-eligible-to-be-counted-towards-my-equity-injecti","question":"Are pre-closing legal and accounting fees eligible to be counted towards my equity injection?","topic":"What counts toward the 10%","audience":"borrower","bot_mode":"buyer","short_answer":"Yes, reasonable and necessary professional fees paid by the buyer prior to closing, such as legal and accounting fees related to the acquisition, can sometimes be counted towards the equity injection.","rule":"Eligible project costs that can be financed by the SBA loan can also be paid for by the buyer's equity injection. This includes reasonable and customary professional fees (legal, accounting, valuation, due diligence) directly related to the acquisition. These expenses must be documented and paid from the buyer's verifiable personal funds.","example":"A buyer pays $10,000 in legal fees and $5,000 in accounting fees before closing a $500,000 business acquisition. If the total equity required is $50,000, these $15,000 in fees can count towards the buyer's equity.","what_lenders_check":"Lenders require invoices and proof of payment from the buyer's personal accounts to verify these expenditures. They ensure the fees are directly related to the acquisition and are reasonable for the transaction size.","required_facts":["Professional fees","Pre-closing expenses","Legal fees","Accounting fees","Equity injection","Proof of payment"],"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":"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"},{"question":"If I contribute existing equipment valued at $50,000 to the acquired business, can it count towards my equity injection?","url":"https://dealroom.so/sba-7a/questions/if-i-contribute-existing-equipment-valued-at-50-000-to-the-acquired-business-can-it-count-"}],"related_terms":[{"term":"Accounting fees","url":"https://dealroom.so/glossary/accounting-fees"},{"term":"Legal fees","url":"https://dealroom.so/glossary/legal-fees"},{"term":"Pre-Closing","url":"https://dealroom.so/glossary/pre-closing"},{"term":"Equity injection","url":"https://dealroom.so/glossary/equity-injection"},{"term":"Lender closing fees","url":"https://dealroom.so/glossary/lender-closing-fees"},{"term":"Eligible closing cost","url":"https://dealroom.so/glossary/eligible-closing-cost"}],"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-pre-closing-legal-and-accounting-fees-eligible-to-be-counted-towards-my-equity-injecti","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."]}