SBA loan basics
Short answer
No, the SBA does not set a specific percentage limit on the amount of 'goodwill' that can be financed in a business acquisition, as long as the overall deal is sound and justified by cash flow.
Goodwill, representing the intangible value of a business beyond its tangible assets, can be a significant portion of an acquisition's purchase price. The SBA focuses on the business's ability to generate sufficient cash flow to repay the loan, regardless of the goodwill component, provided the valuation is reasonable.
A service business acquisition for $1.5 million might have only $200,000 in tangible assets, meaning $1.3 million is allocated to goodwill. The SBA 7(a) loan can finance this, if the business's projected cash flow clearly supports the debt.
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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