For SBA lenders
Short answer
While goodwill can be financed, lenders must ensure the valuation is supported by a comprehensive appraisal, especially when goodwill constitutes a significant portion of the asset purchase.
SOP 50 10 allows the financing of goodwill. However, the purchase price, including the value attributed to goodwill and other intangible assets, must be supported by an independent business valuation performed by a qualified appraiser. The valuation must demonstrate that the purchase price is reasonable.
A $1,000,000 business acquisition includes $700,000 for goodwill. The lender relies on a third-party valuation that justifies this goodwill amount based on established methodology, historical earnings, and future projections.
13 CFR Part 120 — Business Loans
Office of the Federal Register · Federal regulation
SOP 50 10 - Lender and Development Company Loan Programs
Standard 7(a) Authorization File Library
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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