SBA 7(a) Q&A
Short answer
No, the SBA 7(a) program does not set a specific maximum percentage for financing goodwill, but the loan amount is determined by the business's overall cash flow and collateral.
While goodwill is an intangible asset, it is often a significant component of a business acquisition's purchase price. The SBA allows financing of goodwill as part of the overall acquisition, provided the business's projected cash flow can support the debt service, and the transaction is supported by a valuation.
If a business is purchased for $1,000,000, with $200,000 in tangible assets and $800,000 attributed to goodwill, an SBA 7(a) loan can finance this acquisition, as long as the business's earnings justify the total purchase price and debt repayment.
Lenders assess the sustainability of the business's earnings to cover the debt, particularly when a large portion of the purchase price is goodwill. They rely heavily on detailed financial projections and a professional business valuation to justify the loan amount.
13 CFR Part 120 — Business Loans
Office of the Federal Register · Federal regulation
SOP 50 10 - Lender and Development Company Loan Programs
Last checked 2026-06-14. 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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