SBA 7(a) Q&A
Short answer
No, professional fees (e.g., attorney, accountant fees) incurred during due diligence generally cannot count toward the buyer's required equity injection.
The SBA defines equity injection as funds or assets directly contributing to the business's net worth or directly used for the purchase of assets. Professional fees, while necessary, are typically considered business expenses and not a direct capital contribution or asset purchase.
A buyer pays $10,000 in legal fees for contract review during due diligence. This $10,000 cannot be counted as part of the minimum 10% equity injection. The equity injection must be verifiable cash or eligible assets going into the business or directly paying for the 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.
More on what counts toward the 10%
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