SBA 7(a) Q&A
Short answer
The SBA does not specify a maximum percentage of the acquisition price that can be attributed to goodwill for an SBA 7(a) loan.
While some conventional loans might have restrictions on financing intangible assets, the SBA 7(a) program is designed to support small business acquisitions, which often involve significant goodwill. The primary concern is that the total acquisition price, including goodwill, is supported by a justified valuation and the business's projected cash flow.
If you purchase a consulting firm for $1,200,000 where the independent valuation attributes $1,000,000 to goodwill and only $200,000 to tangible assets, an SBA 7(a) loan could still finance this, assuming the business's earnings justify the overall price and loan repayment.
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 2026-06-13. 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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