SBA 7(a) Q&A
Short answer
No, a separate appraisal specifically for goodwill is not typically required; goodwill is usually valued as part of a comprehensive business valuation report.
For business acquisitions, especially those with significant intangible assets like goodwill, the SBA requires a qualified business valuation. This valuation assesses the fair market value of the entire business, which implicitly includes the value of goodwill. A standalone goodwill appraisal is generally not needed.
For your $1,200,000 acquisition, a professional business appraiser will conduct a full valuation, analyzing various methods (income, market, asset-based) to arrive at a fair market value for the entire entity, including any goodwill components.
Lenders rely on the overall business valuation to justify the purchase price and loan amount. They ensure the valuation is conducted by an independent, qualified appraiser and that it adequately supports the financing of goodwill.
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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