{"ok":true,"canonical_url":"https://dealroom.so/glossary/face-value","api_url":"https://dealroom.so/api/public/glossary/face-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":"face-value","term":"Face value","group":"Reading the business","definition":"The nominal or stated value of a financial instrument, asset, or debt, without considering market fluctuations or present value. As a buyer, understand that face value doesn't always reflect true market value or your actual liability.","what_it_means":"For items like promissory notes or insurance policies, face value is the amount printed on the document. When evaluating assets or liabilities, you need to look beyond the face value and consider their actual market worth, collectibility, or current repayment obligations, especially during due diligence.","url":"https://dealroom.so/glossary/face-value","official_sources":[],"related":[{"slug":"business-valuation","term":"Business valuation","url":"https://dealroom.so/glossary/business-valuation"},{"slug":"appraisal","term":"Appraisal","url":"https://dealroom.so/glossary/appraisal"},{"slug":"inventory","term":"Inventory","url":"https://dealroom.so/glossary/inventory"},{"slug":"accounts-receivable","term":"Accounts receivable","url":"https://dealroom.so/glossary/accounts-receivable"}],"related_questions":[{"question":"If I refinance my SBA 7(a) loan after 5 years, do I still face prepayment penalties?","url":"https://dealroom.so/sba-7a/questions/if-i-refinance-my-sba-7-a-loan-after-5-years-do-i-still-face-prepayment-penalties"},{"question":"Will I face a penalty if I pay off my SBA 7(a) loan earlier than planned?","url":"https://dealroom.so/sba-loans/basics/will-i-face-a-penalty-if-i-pay-off-my-sba-7-a-loan-earlier-than-planned"},{"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"},{"question":"What if the value of my stock portfolio (for equity injection) drops before closing?","url":"https://dealroom.so/sba-7a/questions/what-if-the-value-of-my-stock-portfolio-for-equity-injection-drops-before-closing"},{"question":"When acquiring a business, can an SBA loan finance 100% of the goodwill value?","url":"https://dealroom.so/sba-7a/questions/when-acquiring-a-business-can-an-sba-loan-finance-100-of-the-goodwill-value"}]},"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 — Face value","url":"https://dealroom.so/glossary/face-value","source_type":"DealRoom Data"}}