{"ok":true,"canonical_url":"https://dealroom.so/glossary/goodwill","api_url":"https://dealroom.so/api/public/glossary/goodwill","data_freshness":{"sba_records_through":"2026-05-31","fdic_records_through":"2026-03-31","dealroom_last_updated":"2026-06-15","timezone":"America/Chicago"},"source_summary":["Public SBA 7(a) loan records","FDIC institution data","DealRoom lender and franchise enrichment"],"term":{"slug":"goodwill","term":"Goodwill","group":"Reading the business","definition":"The part of the price above the value of physical assets — the customer base, reputation, and cash flow you're really buying.","what_it_means":"Goodwill is why business acquisitions look expensive on paper: you're paying a premium over tangible assets because what you really want is the customer list, contracts, brand, and recurring revenue. Most SBA deals are heavily goodwill-weighted — a service business may have almost no tangible assets but significant goodwill. Lenders are comfortable financing goodwill under the 7(a) program, which is one of its defining advantages over conventional financing.","url":"https://dealroom.so/glossary/goodwill","official_sources":[{"slug":"sop-50-10","title":"SOP 50 10 — Lender and Development Company Loan Programs","official_url":"https://www.sba.gov/document/sop-50-10-lender-development-company-loan-programs","official_label":"View on SBA.gov","authority_tier":2,"publisher":"U.S. Small Business Administration","source_guide_url":"https://dealroom.so/sba-7a/sources/sop-50-10"}],"related":[{"slug":"business-valuation","term":"Business valuation","url":"https://dealroom.so/glossary/business-valuation"},{"slug":"multiple","term":"Multiple","url":"https://dealroom.so/glossary/multiple"},{"slug":"asset-purchase","term":"Asset purchase","url":"https://dealroom.so/glossary/asset-purchase"},{"slug":"ebitda","term":"EBITDA","url":"https://dealroom.so/glossary/ebitda"}],"related_questions":[{"question":"Is a separate appraisal specifically for goodwill required when a business acquisition loan exceeds $1,000,000 and has substantial goodwill?","url":"https://dealroom.so/sba-7a/questions/is-a-separate-appraisal-specifically-for-goodwill-required-when-a-business-acquisition-loa"},{"question":"Can an SBA 7(a) loan finance goodwill?","url":"https://dealroom.so/sba-7a/questions/can-an-sba-7-a-loan-finance-goodwill"},{"question":"For an acquisition with significant goodwill, what maximum goodwill percentage can the SBA 7(a) loan finance relative to the total project cost?","url":"https://dealroom.so/sba-7a/questions/for-an-acquisition-with-significant-goodwill-what-maximum-goodwill-percentage-can-the-sba-"},{"question":"What if the business I'm acquiring has *negative goodwill*?","url":"https://dealroom.so/sba-loans/basics/what-if-the-business-i-m-acquiring-has-negative-goodwill"},{"question":"How does the SBA evaluate goodwill in a business acquisition?","url":"https://dealroom.so/for-lenders/questions/how-does-the-sba-evaluate-goodwill-in-a-business-acquisition"},{"question":"What valuation methods are acceptable for assessing goodwill in an SBA acquisition?","url":"https://dealroom.so/sba-7a/questions/what-valuation-methods-are-acceptable-for-assessing-goodwill-in-an-sba-acquisition"}]},"caveats":["Definitions represent DealRoom's plain-English interpretation for buyers; verify regulatory terms against the official SBA and eCFR sources listed.","Not legal, tax, or financial advice, and not an SBA eligibility determination."],"citation":{"label":"DealRoom.so Glossary — Goodwill","url":"https://dealroom.so/glossary/goodwill","source_type":"DealRoom Data"}}