{"ok":true,"canonical_url":"https://dealroom.so/sba-7a/questions/can-i-use-pre-closing-expenses-like-a-business-broker-s-fee-as-part-of-my-equity-injection","api_url":"https://dealroom.so/api/public/questions/can-i-use-pre-closing-expenses-like-a-business-broker-s-fee-as-part-of-my-equity-injection","question":"Can I use pre-closing expenses, like a business broker's fee, as part of my equity injection?","topic":"What counts toward the 10%","audience":"borrower","bot_mode":"buyer","short_answer":"No, general pre-closing expenses, such as business broker fees or legal costs, cannot typically be counted as part of your required equity injection.","rule":"The equity injection must represent the borrower's \"skin in the game\" towards the purchase price of the business. Expenses incurred during the due diligence or acquisition process are generally considered transaction costs and not part of the capital directly invested into the business's ownership.","example":"A buyer pays a $15,000 business broker fee for a $500,000 acquisition. This $15,000 cannot be used to satisfy the 10% minimum $50,000 equity injection requirement.","what_lenders_check":"Lenders want to ensure that the equity injection directly reflects the borrower's capital contribution to the business's ownership and is not simply funding transactional costs, which are typically financed through the loan or paid separately.","required_facts":[],"source_families":["SOP 50 10 - Lender and Development Company Loan Programs","13 CFR Part 120 - Business Loans"],"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"}],"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":"Pre-closing expenses","url":"https://dealroom.so/glossary/pre-closing-expenses"},{"term":"Broker fee","url":"https://dealroom.so/glossary/broker-fee"},{"term":"Business Broker's Opinion","url":"https://dealroom.so/glossary/business-broker-s-opinion"},{"term":"Pre-Closing","url":"https://dealroom.so/glossary/pre-closing"},{"term":"Pre-Paid Expenses","url":"https://dealroom.so/glossary/pre-paid-expenses"},{"term":"Business broker","url":"https://dealroom.so/glossary/business-broker"}],"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/can-i-use-pre-closing-expenses-like-a-business-broker-s-fee-as-part-of-my-equity-injection","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."]}