SBA Loan Cash to Close & Fees: Equity, Closing Costs and Advisor Compensation

SBA Loan Cash to Close: Down Payment, Fees and the Money You Keep

A low down payment does not mean a low total cash requirement. Before making an offer on a business or building, reconcile the complete project budget, the lender's eligible uses and the cash that must remain available after closing.

How Much Money Do I Need to Bring?

Start with total project cost, not just the purchase price. Add approved improvements, equipment, transaction costs and any working capital included in the transaction. Your required equity is determined by the program, transaction and lender; costs that cannot be financed and retained liquidity can increase the cash you need beyond that equity amount.

Required equity injection or down payment.
Appraisal, business valuation, environmental, title, escrow, legal and insurance costs.
Applicable SBA, CDC and lender charges, identifying which are financed.
Purchase-price or appraisal gaps, unapproved costs and contingencies.
Cash remaining after closing for payroll, inventory, taxes and unexpected repairs.

A Sources-and-Uses Example, Not a Quote

Consider an illustrative $1,000,000 project: $900,000 purchase price, $40,000 approved improvements, $20,000 eligible transaction costs and $40,000 working capital. If the lender approves $900,000 of debt and requires $100,000 of buyer equity, those sources equal the $1,000,000 uses. If you also need $15,000 for costs outside that budget and want to retain $35,000 of operating cash, you need access to $150,000—not just the $100,000 injection. These are invented planning amounts, not our pricing or an SBA rule.

Do not add financed fees twice. Likewise, a deposit already paid can count only if the lender accepts it and you document its source; show it as a credited contribution on the final funds-to-close reconciliation.

Does 10% Down Mean I Qualify?

The familiar 504 structure is usually 50% bank, 40% CDC and 10% borrower, with higher borrower contributions for certain projects. It is not an approval promise. For 7(a), the required contribution depends on the transaction and lender. Read the 504 guide or seller financing guide, then ask for a written equity requirement for your specific project.

What Is California Business Capital's Fee?

California Business Capital is compensated by the capital provider only when financing funds. We do not charge a separate client fee for arranging financing. Lender origination charges, interest, closing costs, and other third-party expenses may still apply and are separate from our compensation. Review the applicable financing agreements and disclosures for the costs and terms of your transaction.

We do not apply the commercial real estate/multifamily 1–2% placement figure as a blanket SBA fee. Ask for written transaction-specific compensation and lender cost disclosures. A lender-paid payment is not the same line item as a borrower-paid guarantee fee or third-party invoice; confirm how each appears in your documents.

Which SBA Fees Can Be Passed Through?

SBA states that a 7(a) lender may pass the upfront guaranty fee to the borrower, but cannot charge the borrower the lender's annual service fee. Applicable schedules are set by fiscal year, so request the schedule that applies to your approval date rather than copying last year's fee table. For a 504, obtain both the bank and CDC cost schedules.

What If the Appraisal Is Below the Purchase Price?

A valuation shortfall may require additional equity, a price adjustment, a different structure or a declined request. A seller note does not automatically cure the gap or qualify as injection. Obtain lender acceptance of any revised sources and uses before removing contingencies.

What to Ask Before Sending a Deposit

Request a written budget separating cash due now, cash due at closing, financed costs, refundable deposits and nonrefundable third-party work. Ask who orders the reports and whether you can use them if the lender changes. Keep a contingency outside the minimum injection instead of exhausting every dollar to close.

Source: SBA 7(a) terms, fees and conditions. Fee schedules and eligibility can change; your lender must confirm the applicable rules.

Figures reflect general SBA program guidelines and typical market practice. Requirements, rates, and timelines vary by lender and deal, and every loan is subject to underwriting and approval.

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SBA Loan Cash to Close: Down Payment, Fees and the Money You Keep