SBA 7(a) Q&A
Short answer
No, a separate appraisal specifically for goodwill is not required; rather, a comprehensive business valuation is needed to support the overall purchase price, including any goodwill component, for loans over $500,000.
For business acquisitions, if the loan amount exceeds $500,000, the SBA requires a business valuation report prepared by a qualified, independent appraiser. This valuation assesses the entire business, including tangible assets and intangible assets like goodwill. The valuation report does not typically separate out a 'goodwill appraisal' but rather provides an opinion on the fair market value of the entire business as a going concern, thereby justifying the goodwill component implicitly.
For a $1,200,000 business acquisition loan, where a significant portion of the price is goodwill, a single, comprehensive business valuation report from a qualified appraiser will be required to justify the entire $1,200,000 purchase price, rather than a separate goodwill-only appraisal.
Insider move
Lenders scrutinize the business valuation report to ensure it's thorough, professionally prepared, and supports the purchase price. They focus on the appraiser's methodology and assumptions, especially when goodwill represents a large percentage of the purchase.
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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