SBA 7(a) Q&A
Short answer
There is no specific dollar limit or percentage of the purchase price that can be attributed solely to goodwill, as long as the total acquisition cost is supported by an independent business valuation.
The SBA 7(a) program allows for the financing of intangible assets, including goodwill, as part of a business acquisition. The key requirement is that the overall purchase price, including goodwill, is justified by a qualified, independent business appraisal, ensuring the loan amount does not exceed the fair market value of the assets and business.
If a business is valued at $2 million, and its tangible assets are only $500,000, the remaining $1.5 million (75%) could be attributed to goodwill. An SBA loan can finance this, provided the valuation convincingly supports the $2 million price.
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.
More on goodwill financing
Terms in this answer
Pre-qualify your SBA 7(a) deal
Tell us the business, the price, and where you are — we'll point you to the lenders most likely to fund a deal like yours and flag anything that trips up approval.
Free · No documents · Usually same-day