SBA 7(a) Q&A
Short answer
Buyers typically pay for legal fees, appraisal costs, environmental reports, title insurance, and various lender fees, which can range from 2-5% of the loan amount, in addition to the down payment.
While some closing costs can be financed into the SBA loan, many are typically paid directly by the borrower. These include third-party report fees (e.g., environmental, appraisal), legal counsel for the borrower, and certain lender fees not covered by the loan proceeds.
For a $750,000 SBA loan, a buyer might face $5,000 in legal fees, $3,000 for an appraisal, $2,500 for a Phase I environmental report, and other miscellaneous fees, totaling around $10,500-$20,000 out-of-pocket.
Insider move
Lenders ensure the borrower is aware of and can cover all closing costs to prevent delays or shortfalls at closing. They disclose all fees transparently as part of the loan estimate.
13 CFR Part 120 — Business Loans
Office of the Federal Register · Federal regulation
SOP 50 10 - Lender and Development Company Loan Programs
Last checked 2026-06-14. 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.
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