The Small Business Administration (SBA) has notified banks that it will limit "goodwill" financing to 50 percent of the loan amount (up to a maximum of $250,000), according to the Washington Post. Goodwill is the value of a business that can't be accounted for through physical things (such as assets in a warehouse).
Since the announcement, the SBA has heard many lenders' complaints that $250,000 is too low and will hurt the growth of small business. In the Washington Post report, an SBA spokesman said the administration is aiming to issue new guidance soon.
Source:
Washington Post: SBA's 'Goodwill' Leaves Bad Taste For Small Businesses
