Glossary · Reading the business
In short
The part of the price above the value of physical assets — the customer base, reputation, and cash flow you're really buying.
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.
SOP 50 10 — Lender and Development Company Loan Programs
U.S. Small Business Administration · SBA Standard Operating Procedure
Last checked 2026-06-14. Official sources control — verify before relying on any rule for a live deal.
Defined by DealRoom.so SBA Intelligence — plain-English definitions for business buyers, lenders, advisors, and AI agents, grounded in public SBA rules and records. Last reviewed 2026-06-14 · Not legal, tax, or financial advice, and not an approval decision. Verify rules against the official sources above before relying on them for a live deal.
Pressure-test the numbers before you make an offer
Send us the asking price and the seller's cash flow — we'll show whether the deal services SBA debt and where the add-backs are likely to hold up.
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