{"ok":true,"canonical_url":"https://dealroom.so/glossary/independent-equipment-appraisal","api_url":"https://dealroom.so/api/public/glossary/independent-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":"independent-equipment-appraisal","term":"independent equipment appraisal","group":"Reading the business","definition":"A valuation of a business's machinery and equipment by an unbiased third party. This appraisal determines the fair market value of these assets, which is crucial for collateral in an SBA loan.","what_it_means":"For an SBA 7(a) loan, if equipment is significant collateral, the lender will likely require an independent equipment appraisal to determine its orderly liquidation value. This ensures the collateral adequately supports the loan. You'll use this to confirm the value of assets you're acquiring and what the bank sees as security.","url":"https://dealroom.so/glossary/independent-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":"appraisal","term":"Appraisal","url":"https://dealroom.so/glossary/appraisal"},{"slug":"fair-market-value","term":"Fair market value","url":"https://dealroom.so/glossary/fair-market-value"},{"slug":"business-valuation","term":"Business valuation","url":"https://dealroom.so/glossary/business-valuation"}],"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":"When is an independent business appraisal required for a change of ownership transaction exceeding $500,000?","url":"https://dealroom.so/for-lenders/questions/when-is-an-independent-business-appraisal-required-for-a-change-of-ownership-transaction-e"},{"question":"Is an independent business appraisal required for a 7(a) loan financing a business acquisition with a purchase price exactly $500,000?","url":"https://dealroom.so/for-lenders/questions/is-an-independent-business-appraisal-required-for-a-7-a-loan-financing-a-business-acquisit"},{"question":"When does the SBA require an independent business appraisal for a change-of-ownership if the loan amount is under $500,000?","url":"https://dealroom.so/for-lenders/questions/when-does-the-sba-require-an-independent-business-appraisal-for-a-change-of-ownership-if-t"}]},"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 — independent equipment appraisal","url":"https://dealroom.so/glossary/independent-equipment-appraisal","source_type":"DealRoom Data"}}