SBA 7(a) Q&A
Short answer
Yes, reasonable and necessary due diligence costs directly related to the acquisition, such as environmental reports, can typically be financed as part of the working capital in an SBA 7(a) loan.
Costs associated with necessary due diligence for an acquisition, including environmental assessments, appraisals, and legal fees, are considered eligible uses of loan proceeds. These are usually included within the working capital component or directly as acquisition costs.
A buyer is acquiring a business with real estate and needs to commission a Phase I Environmental Site Assessment costing $3,000. This $3,000 can be included in the SBA 7(a) loan amount for the acquisition.
13 CFR Part 120 — Business Loans
Office of the Federal Register · Federal regulation
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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