Glossary · Reading the business
Intangible value
In short
This refers to the non-physical assets of a business that contribute to its worth, such as brand reputation, customer lists, patents, and goodwill. These are often crucial for future cash flow.
What it means in a deal
For many small businesses, intangible value like customer relationships and brand equity can be a significant portion of the purchase price, often categorized as goodwill. Ensure your business valuation adequately assesses these assets, as they underpin future earnings.
Related terms
Common questions about Intangible value
- How does the SBA typically value intangible assets like customer lists or software for collateral?
- How does the SBA assess the value of "blue sky" or intangible assets when underwriting a business acquisition?
- Is it possible to finance a business with an SBA 7(a) loan where most of its value is intangible assets like customer lists and brand reputation?
- How does an SBA 7(a) loan handle intangible assets like intellectual property as collateral?
- Does the SBA take a lien on all business assets, even minor fixtures or intangible assets?
- What specific considerations apply to valuing goodwill and intangible assets in a 7(a) change-of-ownership transaction?
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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