SBA loan basics
Short answer
Yes, SBA 7(a) loans are unique in their ability to finance a significant portion of "goodwill," which is the intangible value of a business beyond its physical assets.
Goodwill represents the value of a business's reputation, brand name, customer base, and other intangible assets. SBA 7(a) loans can finance substantial amounts of goodwill in business acquisitions, which is often the largest component of a purchase price, making it possible to acquire service-based businesses with few tangible assets.
If you buy a service business for $1 million with only $200,000 in tangible assets, the remaining $800,000 is considered goodwill. An SBA 7(a) loan can finance a large portion of this goodwill, often up to 90% of the total project.
Lenders rely on a business valuation or appraisal to determine the value of goodwill. They ensure the valuation is reasonable and justified by the business's cash flow, as goodwill's value is directly tied to future earnings potential.
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
SBA 7(a) Loans Overview
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.
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