{"ok":true,"canonical_url":"https://dealroom.so/glossary/appraised-value","api_url":"https://dealroom.so/api/public/glossary/appraised-value","data_freshness":{"sba_records_through":"2026-05-31","fdic_records_through":"2026-03-31","dealroom_last_updated":"2026-06-15","timezone":"America/Chicago"},"source_summary":["Public SBA 7(a) loan records","FDIC institution data","DealRoom lender and franchise enrichment"],"term":{"slug":"appraised-value","term":"Appraised value","group":"Reading the business","definition":"This is the independent expert's opinion of a business's or asset's fair market value. For an SBA loan, the appraised value helps justify the purchase price and ensure adequate collateral.","what_it_means":"For business acquisitions, especially larger ones, the SBA often requires an independent business valuation or appraisal. This valuation impacts the loan amount and collateral requirements. Ensure the purchase price aligns with the appraised value to avoid a collateral shortfall or needing more equity.","url":"https://dealroom.so/glossary/appraised-value","official_sources":[{"slug":"sop-50-10","title":"SOP 50 10 — Lender and Development Company Loan Programs","official_url":"https://www.sba.gov/document/sop-50-10-lender-development-company-loan-programs","official_label":"View on SBA.gov","authority_tier":2,"publisher":"U.S. Small Business Administration","source_guide_url":"https://dealroom.so/sba-7a/sources/sop-50-10"}],"related":[{"slug":"business-valuation","term":"Business valuation","url":"https://dealroom.so/glossary/business-valuation"},{"slug":"collateral","term":"Collateral","url":"https://dealroom.so/glossary/collateral"},{"slug":"fair-market-value","term":"Fair market value","url":"https://dealroom.so/glossary/fair-market-value"},{"slug":"business-acquisition-loan","term":"Business acquisition loan","url":"https://dealroom.so/glossary/business-acquisition-loan"}],"related_questions":[{"question":"What happens if the appraised value of the collateral declines significantly after the loan is disbursed?","url":"https://dealroom.so/sba-7a/questions/what-happens-if-the-appraised-value-of-the-collateral-declines-significantly-after-the-loa"},{"question":"How does the appraised value of goodwill impact the overall structure and terms of my SBA 7(a) loan?","url":"https://dealroom.so/sba-7a/questions/how-does-the-appraised-value-of-goodwill-impact-the-overall-structure-and-terms-of-my-sba-"},{"question":"Can I use appraised business equipment or other non-cash assets as part of my equity injection?","url":"https://dealroom.so/sba-7a/questions/can-i-use-appraised-business-equipment-or-other-non-cash-assets-as-part-of-my-equity-injec"},{"question":"If I'm buying out a partner, does the business valuation need to be formally appraised for the SBA?","url":"https://dealroom.so/sba-7a/questions/if-i-m-buying-out-a-partner-does-the-business-valuation-need-to-be-formally-appraised-for-"},{"question":"What if the primary business assets are specialized machinery with limited resale value?","url":"https://dealroom.so/sba-7a/questions/what-if-the-primary-business-assets-are-specialized-machinery-with-limited-resale-value"},{"question":"How does the SBA evaluate the value of contributed equipment for equity injection?","url":"https://dealroom.so/for-lenders/questions/how-does-the-sba-evaluate-the-value-of-contributed-equipment-for-equity-injection"}]},"caveats":["Definitions represent DealRoom's plain-English interpretation for buyers; verify regulatory terms against the official SBA and eCFR sources listed.","Not legal, tax, or financial advice, and not an SBA eligibility determination."],"citation":{"label":"DealRoom.so Glossary — Appraised value","url":"https://dealroom.so/glossary/appraised-value","source_type":"DealRoom Data"}}