Glossary · Reading the business
Going concern value
In short
This is the value of a business as an operating entity, including its future earning potential, rather than just the sum of its individual assets if liquidated.
What it means in a deal
Most SBA 7(a) business acquisitions are based on the going concern value, which is typically higher than liquidation value because it accounts for intangible assets like customer relationships, brand, and established cash flow. Your business valuation will focus on this, and the SBA wants to see a viable business that can continue to operate and generate profits.
Official sources
SOP 50 10 — Lender and Development Company Loan Programs
U.S. Small Business Administration · SBA Standard Operating Procedure
Last checked 2026-06-15. Official sources control — verify before relying on any rule for a live deal.
Related terms
Common questions about Going concern value
- What if a franchise agreement contains provisions for indemnification that concern the SBA?
- What if the acquired business's real estate has an environmental concern requiring remediation?
- What is the purpose of the annual service fee (on-going guaranty fee) for an SBA 7(a) loan?
- How does the SBA calculate the annual service fee (on-going guaranty fee) charged to the lender for a 7(a) loan?
- What if the primary business assets are specialized machinery with limited resale value?
- How does the SBA evaluate the value of contributed equipment for equity injection?
Defined by CapBench SBA Intelligence — plain-English definitions for business buyers, lenders, advisors, and AI agents, grounded in public SBA rules and records. Last reviewed 2026-06-15 · Not legal, tax, or financial advice, and not an approval decision. Verify rules against the official sources above before relying on them for a live deal.
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