{"ok":true,"canonical_url":"https://dealroom.so/glossary/commercial-appraisal","api_url":"https://dealroom.so/api/public/glossary/commercial-appraisal","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":"commercial-appraisal","term":"Commercial Appraisal","group":"Reading the business","definition":"This is a professional assessment of the market value of commercial real estate or business assets. Buyers care because it determines the collateral value available to secure your SBA loan, ensuring the lender has adequate security.","what_it_means":"If your acquisition includes real estate, a commercial appraisal will be required by the lender to establish its fair market value. For business assets, a business valuation or equipment appraisal might be needed. The appraised value often dictates the maximum loan amount the lender can offer for that collateral.","url":"https://dealroom.so/glossary/commercial-appraisal","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"},{"slug":"13-cfr-part-120","title":"13 CFR Part 120 — Business Loans","official_url":"https://www.ecfr.gov/current/title-13/chapter-I/part-120","official_label":"View on eCFR","authority_tier":1,"publisher":"Office of the Federal Register","source_guide_url":"https://dealroom.so/sba-7a/sources/13-cfr-part-120"}],"related":[{"slug":"appraisal","term":"Appraisal","url":"https://dealroom.so/glossary/appraisal"},{"slug":"collateral","term":"Collateral","url":"https://dealroom.so/glossary/collateral"},{"slug":"business-valuation","term":"Business valuation","url":"https://dealroom.so/glossary/business-valuation"},{"slug":"fair-market-value","term":"Fair market value","url":"https://dealroom.so/glossary/fair-market-value"}],"related_questions":[{"question":"What type of property appraisal is required if my $1.2 million SBA loan includes commercial real estate?","url":"https://dealroom.so/sba-7a/questions/what-type-of-property-appraisal-is-required-if-my-1-2-million-sba-loan-includes-commercial"},{"question":"Is an independent appraisal always required when an acquisition includes significant goodwill?","url":"https://dealroom.so/sba-7a/questions/is-an-independent-appraisal-always-required-when-an-acquisition-includes-significant-goodw"},{"question":"When is an independent appraisal required for non-real estate business assets being acquired?","url":"https://dealroom.so/sba-7a/questions/when-is-an-independent-appraisal-required-for-non-real-estate-business-assets-being-acquir"},{"question":"Does the SBA require an independent business appraisal for a business acquisition costing $400,000?","url":"https://dealroom.so/sba-7a/questions/does-the-sba-require-an-independent-business-appraisal-for-a-business-acquisition-costing-"},{"question":"Can an SBA 7(a) loan cover the cost of a business valuation or appraisal?","url":"https://dealroom.so/sba-7a/questions/can-an-sba-7-a-loan-cover-the-cost-of-a-business-valuation-or-appraisal"},{"question":"When is a business appraisal required for a change of ownership transaction exceeding $500,000?","url":"https://dealroom.so/for-lenders/questions/when-is-a-business-appraisal-required-for-a-change-of-ownership-transaction-exceeding-500-"}]},"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 — Commercial Appraisal","url":"https://dealroom.so/glossary/commercial-appraisal","source_type":"DealRoom Data"}}