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Is the US Small Business Administration Limiting Goodwill?

From The Small Business Channel: Limit on goodwill by SBA slowing small business acquisitions

Small business owners attempting to sell their businesses, along with business brokers are frustrated over the rules of the SBA concerning good will, which has stopped a lot of business deals from being completed because of the inability to get the financing to close the deals.

Starting in March the SBA capped the top loan amount for good will at $250,000, which has been the main detriment in owners being able to sell their small businesses, and prospective buyers to acquire them.

For those who may not know, good will refers to the intangible assets of a business, which could include things like its reputation, patents, trademarks, and other non-physical items that make a business what it is, aside from the usual things like buildings and equipment, among other tangible items we think of in relationship to a business.

Read the full article here.


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