For SBA lenders
Short answer
Yes, a 7(a) loan can finance the purchase of intangible assets such as customer lists, trade secrets, and goodwill as part of a business acquisition.
When acquiring an existing business, 7(a) loan proceeds can be used to finance various assets, including intangible assets like customer lists, trade names, patents, and goodwill. These assets must be valued appropriately, typically as part of a comprehensive business valuation, and are considered eligible uses of funds as they contribute to the going concern value of the acquired business.
A software company acquires a competitor for $2,000,000. The purchase price includes $500,000 for tangible assets and $1,500,000 for intangible assets, including proprietary software code, customer contracts, and intellectual property. The 7(a) loan finances these intangible assets as part of the total acquisition cost.
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 2026-06-13. 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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