{"ok":true,"canonical_url":"https://dealroom.so/glossary/independent-third-party-appraisal","api_url":"https://dealroom.so/api/public/glossary/independent-third-party-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-third-party-appraisal","term":"Independent third-party appraisal","group":"Reading the business","definition":"A valuation by an unbiased expert of the business or its assets. Lenders require this to ensure the purchase price is fair and the collateral value is sufficient for the loan.","what_it_means":"For 7(a) loans, an appraisal is typically required for real estate, business valuations over $250,000, or specific equipment. You need to understand its findings, as a low appraisal can impact loan approval or require you to adjust your offer.","url":"https://dealroom.so/glossary/independent-third-party-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":"business-valuation","term":"Business valuation","url":"https://dealroom.so/glossary/business-valuation"},{"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"}],"related_questions":[{"question":"Can a third-party loan, not from the seller, count towards the minimum equity injection?","url":"https://dealroom.so/sba-7a/questions/can-a-third-party-loan-not-from-the-seller-count-towards-the-minimum-equity-injection"},{"question":"What specific language must a non-SBA third-party standby agreement include to ensure eligibility?","url":"https://dealroom.so/for-lenders/questions/what-specific-language-must-a-non-sba-third-party-standby-agreement-include-to-ensure-elig"},{"question":"How does a lender verify the full standby status of a non-SBA third-party debt?","url":"https://dealroom.so/for-lenders/questions/how-does-a-lender-verify-the-full-standby-status-of-a-non-sba-third-party-debt"},{"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":"Can an SBA 7(a) loan finance the purchase of intellectual property rights from a third party?","url":"https://dealroom.so/sba-7a/questions/can-an-sba-7-a-loan-finance-the-purchase-of-intellectual-property-rights-from-a-third-part"},{"question":"What are the eligibility requirements for funds borrowed from a third party to count as equity injection?","url":"https://dealroom.so/sba-7a/questions/what-are-the-eligibility-requirements-for-funds-borrowed-from-a-third-party-to-count-as-eq"}]},"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 third-party appraisal","url":"https://dealroom.so/glossary/independent-third-party-appraisal","source_type":"DealRoom Data"}}