SBA 7(a) Q&A
Short answer
Yes, certain documented professional fees paid prior to closing, directly related to the acquisition, can count towards the equity injection.
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.
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.
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.
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 2026-06-14. Official sources control — verify before relying on any rule for a live deal.
Last reviewed 2026-06-14 · SBA sources checked through 2026-06-14. 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.
More on what counts toward the 10%
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