SBA 7(a) Q&A
Short answer
SBA 7(a) loans can finance up to 100% of the goodwill associated with a business acquisition, provided the overall project meets eligibility and underwriting standards.
Unlike some conventional loans, the SBA 7(a) program allows for the financing of intangible assets, including goodwill, which is often a significant component of a business's value during an acquisition. The lender must ensure the business valuation supports the goodwill amount.
For a $1,000,000 business purchase where $700,000 is attributed to goodwill, an SBA 7(a) loan can finance this entire goodwill portion, alongside other assets, up to the maximum loan amount.
Insider move
Lenders rely heavily on a qualified business valuation to justify the amount of goodwill being financed, ensuring it is reasonable and supported by the business's earnings and market comparables.
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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