SBA 7(a) Q&A
Short answer
A separate goodwill appraisal is typically not required, but an independent business valuation that assesses the entire business, including goodwill, is mandatory for business acquisitions exceeding $500,000.
For a change of ownership transaction where the loan amount exceeds $500,000, a complete independent business valuation from a qualified source is required. This valuation will analyze all assets, including tangible and intangible assets like goodwill, to support the reasonableness of the purchase price. A separate, distinct appraisal specifically for 'goodwill' itself is not a standard SBA requirement.
If you're acquiring a business for $1.2 million with significant goodwill, the lender will require a comprehensive business valuation by a qualified appraiser. This valuation will justify the entire $1.2 million purchase price, including the goodwill component, rather than requiring a separate goodwill-only appraisal.
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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