For SBA lenders
Short answer
The SBA permits financing of goodwill up to the maximum loan amount, but lenders must ensure the purchase price, including goodwill, is supported by a sound business valuation.
While the SBA does not specifically limit the amount of goodwill that can be financed, it requires that the overall purchase price, which may include goodwill, be reasonable and supported by a robust business valuation. The valuation assures the lender and SBA that the loan amount is justified by the underlying asset value and earning potential.
A business is being acquired for $1.5 million, with $500,000 allocated to tangible assets and $1 million to goodwill. The lender requires a third-party business valuation report that justifies the $1.5 million purchase price based on the business's financial performance and industry metrics.
13 CFR Part 120 — Business Loans
Office of the Federal Register · Federal regulation
SOP 50 10 - Lender and Development Company Loan Programs
Last checked 2026-06-13. 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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