SBA loan basics
Short answer
The SBA requires goodwill to be valued as part of the total business value by an independent appraiser, based on a comprehensive analysis of the business's earnings and assets.
Goodwill, representing intangible assets like reputation, customer base, and brand recognition, is a common component of a business's purchase price. For SBA loans, it must be valued by a qualified third-party appraiser who considers factors like historical earnings, industry trends, and comparable sales.
A business is purchased for $1,200,000, with $400,000 attributed to tangible assets and $800,000 to goodwill. The independent valuation report confirms the $1,200,000 total fair market value, including the goodwill component, supporting the loan amount.
Insider move
Lenders rely heavily on the independent business valuation report to ensure the purchase price, including goodwill, is justified. They verify the appraiser's credentials and the methodology used to ensure compliance with SBA requirements for loan authorization.
13 CFR Part 120 — Business Loans
Office of the Federal Register · Federal regulation
SOP 50 10 - Lender and Development Company Loan Programs
Last checked 2026-06-13. 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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