SBA 7(a) Q&A
Short answer
Yes, an SBA 7(a) loan can typically cover property taxes that are due at closing as part of the total project costs for acquired real estate.
When real estate is part of an SBA 7(a) business acquisition, customary and reasonable closing costs, including prorated property taxes due at closing, can be financed within the loan amount. These are considered eligible uses of loan proceeds as they are directly associated with the acquisition of the real property.
A buyer is acquiring a business and its real estate for $1,500,000. At closing, prorated property taxes amount to $5,000. This $5,000 can be included in the total SBA loan amount, provided it falls within the approved project costs.
Lenders ensure that all closing costs, including property taxes, are reasonable, customary, and properly itemized as part of the overall project budget. They will verify that these costs are legitimate and directly tied to the real estate acquisition.
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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