New SBA Rules Mean Every Business Sale Needs an Independent Valuation — Here’s What Changed
The SBA’s updated lending rules eliminate the old $250,000 threshold that let banks perform their own business valuations on smaller deals. Starting October 1, 2026, every business sale financed with an SBA 7(a) loan requires an independent valuation from a qualified professional — ordered by the bank, not the buyer or seller. Deals with a purchase price of $3 million or more also require a...Read More
The SBA Just Created Four Categories for Business Sales — Which One Is Yours?
Starting October 1, 2026, the SBA requires every business sale financed with a 7(a) loan to be classified into one of four categories: Initial Acquisition, Business Expansion, Owner Buyout, or ESOP & Cooperative. The category your deal falls into determines how much cash the buyer needs up front, what financial reports the bank must order, and how strong the earnings need to be to support...Read More
What Makes a Business Attractive to Buyers?
Many business owners wonder whether their industry will determine how easy it is to sell their business. While certain industries may experience periods of higher demand than others, buyers rarely make decisions based on industry alone. More often, they focus on the quality of the business itself. A well-managed company with strong financial performance will generally attract more interest...Read More
What Is Goodwill and Why Does It Matter When Selling a Business?
When business owners hear the term goodwill, they often assume it simply means having a good reputation. While reputation certainly plays a role, goodwill has a much broader meaning when it comes to valuing and selling a business. In simple terms, goodwill represents the value of a business that cannot be attributed to its tangible assets alone. Equipment, inventory, furniture, and real...Read More
