SBA 7(a) Q&A
Short answer
Yes, an independent business valuation is generally required for any acquisition where the total financing, including goodwill, exceeds $250,000. This valuation determines the fair market value of all assets, including goodwill.
For business acquisition loans over $250,000, the SBA mandates an independent business valuation to ensure the purchase price is justified. This valuation assesses all business assets, tangible and intangible (like goodwill), to establish a reasonable value for the transaction.
If you are acquiring a service business for $750,000, where $400,000 is attributed to goodwill, an independent business valuation performed by a qualified appraiser will be mandatory to support the purchase price.
13 CFR Part 120 — Business Loans
Office of the Federal Register · Federal regulation
7(a) Loan Program — Terms, Conditions, and Eligibility
U.S. Small Business Administration · Official SBA source
SOP 50 10 - Lender and Development Company Loan Programs
Last checked 2026-06-14. Official sources control — verify before relying on any rule for a live deal.
Last reviewed 2026-06-14 · SBA sources checked through 2026-06-14. 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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