SBA loan basics
Short answer
Yes, an SBA 7(a) loan can typically cover reasonable and customary closing costs and professional fees associated with a business acquisition.
Eligible uses of 7(a) loan proceeds include certain closing costs, such as legal fees, appraisal fees, environmental review costs, and accounting fees directly related to the acquisition. These costs are considered part of the overall project financing.
For a $1,000,000 business acquisition, the loan might include $15,000 for legal fees, $5,000 for appraisal, and $3,000 for environmental reports, all financed within the SBA 7(a) loan amount.
Lenders scrutinize these fees to ensure they are reasonable, customary, and directly related to the loan transaction or acquisition. They require documentation like invoices and statements of work to justify the amounts.
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 use of proceeds
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