{"ok":true,"canonical_url":"https://dealroom.so/glossary/equipment-appraisal","api_url":"https://dealroom.so/api/public/glossary/equipment-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":"equipment-appraisal","term":"Equipment Appraisal","group":"Reading the business","definition":"A professional valuation of a business's machinery and equipment. It determines the fair market value and liquidation value of these assets, which are often pledged as collateral.","what_it_means":"For deals with substantial equipment, your lender will require an equipment appraisal to determine its value as collateral for the loan. This appraisal will often provide both fair market value and orderly liquidation value. Scrutinize this report to ensure the equipment is in good condition and its valuation aligns with your expectations, as it secures a portion of your loan.","url":"https://dealroom.so/glossary/equipment-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"}],"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":"tangible-asset","term":"Tangible asset","url":"https://dealroom.so/glossary/tangible-asset"},{"slug":"appraisal","term":"Appraisal","url":"https://dealroom.so/glossary/appraisal"}],"related_questions":[{"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-"},{"question":"When is a separate goodwill appraisal necessary for a business acquisition loan exceeding $1,000,000?","url":"https://dealroom.so/sba-7a/questions/when-is-a-separate-goodwill-appraisal-necessary-for-a-business-acquisition-loan-exceeding-"}]},"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 — Equipment Appraisal","url":"https://dealroom.so/glossary/equipment-appraisal","source_type":"DealRoom Data"}}