{"ok":true,"canonical_url":"https://dealroom.so/sba-7a/questions/can-professional-fees-i-ve-already-paid-e-g-legal-valuation-count-towards-my-equity-inject","api_url":"https://dealroom.so/api/public/questions/can-professional-fees-i-ve-already-paid-e-g-legal-valuation-count-towards-my-equity-inject","question":"Can professional fees I've already paid (e.g., legal, valuation) count towards my equity injection?","topic":"What counts toward the 10%","audience":"borrower","bot_mode":"buyer","short_answer":"Yes, certain documented professional fees paid prior to closing, directly related to the acquisition, can count towards the equity injection.","rule":"The SBA allows for certain pre-paid expenses directly related to the business acquisition, such as legal fees, accounting fees, and independent business valuation costs, to be considered part of the equity injection. These must be clearly documented with invoices and proof of payment by the borrower, confirming they were paid from unencumbered personal funds.","example":"A buyer pays $5,000 in legal fees and $3,000 for a business valuation during due diligence for a $300,000 acquisition. If the required equity is $30,000, these $8,000 in documented expenses can be counted, meaning the buyer only needs to inject an additional $22,000 cash.","what_lenders_check":"Lenders will require detailed invoices for the services rendered and verifiable proof of payment from the borrower's unencumbered funds. They ensure the fees are reasonable, directly related to the acquisition, and not already financed by the loan.","required_facts":["Pre-paid professional fees","Directly acquisition-related","Documented invoices","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":"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":"Legal fees","url":"https://dealroom.so/glossary/legal-fees"},{"term":"Equity injection","url":"https://dealroom.so/glossary/equity-injection"},{"term":"Business Valuation Fees","url":"https://dealroom.so/glossary/business-valuation-fees"},{"term":"Minimum Equity Injection","url":"https://dealroom.so/glossary/minimum-equity-injection"},{"term":"Tangible Equity Injection","url":"https://dealroom.so/glossary/tangible-equity-injection"},{"term":"Hidden Equity Injection","url":"https://dealroom.so/glossary/hidden-equity-injection"}],"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":"2026-06-14","sba_rule_sources_checked_through":"2026-06-14"},"citation":{"label":"DealRoom.so SBA 7(a) Q&A","url":"https://dealroom.so/sba-7a/questions/can-professional-fees-i-ve-already-paid-e-g-legal-valuation-count-towards-my-equity-inject","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."]}