SBA 7(a) Q&A
Short answer
Yes, reasonable and customary legal fees associated with closing the SBA 7(a) loan are generally eligible to be financed within the loan amount.
SBA loan proceeds can be used for various eligible expenses, including professional fees necessary to facilitate the loan. This includes lender's legal fees, borrower's legal fees (if applicable and reasonable), and other closing costs like title insurance or appraisal fees.
If your $500,000 SBA 7(a) acquisition loan has $8,000 in combined legal and closing fees, these fees can typically be added to the principal, making your total financed amount $508,000 (assuming it stays within maximum loan limits).
13 CFR Part 120 — Business Loans
Office of the Federal Register · Federal regulation
7(a) Loan Program — Terms, Conditions, and Eligibility
U.S. Small Business Administration · Official SBA source
SOP 50 10 - Lender and Development Company Loan Programs
Last checked 2026-06-13. Official sources control — verify before relying on any rule for a live deal.
Last reviewed 2026-06-13 · SBA sources checked through 2026-06-13. DealRoom analysis of public SBA 7(a) lending records (FY2020–present). Grounded in the current SBA rulebook; verify against the official sources above before relying on it for a live deal. Not legal, tax, or financial advice, and not an approval decision.
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