SBA 7(a) Q&A
Short answer
Goodwill is defined as the intangible asset reflecting the value of a business beyond its tangible assets, such as brand reputation, customer loyalty, and intellectual property.
For business acquisitions, the SBA recognizes that a portion of the purchase price often represents intangible assets like goodwill. The SBA 7(a) program allows for the financing of goodwill, as long as it is justified by a professional business valuation.
A business is purchased for $1 million, with $300,000 attributed to tangible assets (equipment, inventory) and $700,000 to goodwill (brand name, customer relationships). The SBA loan can finance both components, provided the valuation supports it.
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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