{"ok":true,"canonical_url":"https://dealroom.so/glossary/asset-value","api_url":"https://dealroom.so/api/public/glossary/asset-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":"asset-value","term":"Asset Value","group":"Reading the business","definition":"The monetary worth of a business's tangible assets like equipment, inventory, and real estate. Lenders use this to assess collateral for your loan.","what_it_means":"Your lender will appraise the fair market value of the business's assets to determine collateral coverage for your loan. They'll also consider liquidation value, which is usually lower. Understand which assets are being pledged and their assessed value, as this directly impacts the collateral shortfall calculation and your equity injection requirements.","url":"https://dealroom.so/glossary/asset-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":"collateral","term":"Collateral","url":"https://dealroom.so/glossary/collateral"},{"slug":"liquidation-value","term":"Liquidation Value","url":"https://dealroom.so/glossary/liquidation-value"},{"slug":"appraisal","term":"Appraisal","url":"https://dealroom.so/glossary/appraisal"},{"slug":"collateral-shortfall","term":"Collateral shortfall","url":"https://dealroom.so/glossary/collateral-shortfall"}],"related_questions":[{"question":"Is a blanket lien on all business assets always required for a 7(a) loan, regardless of loan size or asset value?","url":"https://dealroom.so/for-lenders/questions/is-a-blanket-lien-on-all-business-assets-always-required-for-a-7-a-loan-regardless-of-loan"},{"question":"What is the difference between an asset and stock purchase in a buyout?","url":"https://dealroom.so/sba-7a/questions/what-is-the-difference-between-an-asset-and-stock-purchase-in-a-buyout"},{"question":"How does a recent significant personal asset purchase affect my SBA 7(a) loan application?","url":"https://dealroom.so/sba-7a/questions/how-does-a-recent-significant-personal-asset-purchase-affect-my-sba-7-a-loan-application"},{"question":"What if the business I'm buying has intellectual property (e.g., patents, trademarks) as its main asset?","url":"https://dealroom.so/sba-7a/questions/what-if-the-business-i-m-buying-has-intellectual-property-e-g-patents-trademarks-as-its-ma"},{"question":"How does an SBA 7(a) loan address the financing of intellectual property as a major business asset?","url":"https://dealroom.so/sba-7a/questions/how-does-an-sba-7-a-loan-address-the-financing-of-intellectual-property-as-a-major-busines"},{"question":"Can an SBA 7(a) loan be used to purchase a business where goodwill is the primary asset?","url":"https://dealroom.so/sba-7a/questions/can-an-sba-7-a-loan-be-used-to-purchase-a-business-where-goodwill-is-the-primary-asset"}]},"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 — Asset Value","url":"https://dealroom.so/glossary/asset-value","source_type":"DealRoom Data"}}