{"ok":true,"canonical_url":"https://dealroom.so/glossary/internal-appraisal","api_url":"https://dealroom.so/api/public/glossary/internal-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":"internal-appraisal","term":"Internal Appraisal","group":"Reading the business","definition":"This is an estimate of a business's or asset's value performed by the buyer or seller, not an independent third party. It serves as an initial assessment, often for negotiation purposes.","what_it_means":"You might conduct an internal appraisal to gauge a reasonable offer price before engaging a professional appraiser. While useful for your own due diligence and crafting an LOI, an internal appraisal will not satisfy the SBA's requirement for an independent business valuation if the loan amount exceeds a certain threshold or if specific assets like real estate are involved.","url":"https://dealroom.so/glossary/internal-appraisal","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":"loi","term":"LOI","url":"https://dealroom.so/glossary/loi"},{"slug":"due-diligence","term":"Due diligence","url":"https://dealroom.so/glossary/due-diligence"}],"related_questions":[{"question":"Can a lender accept contributed equity in the form of existing machinery valued by an internal appraisal?","url":"https://dealroom.so/for-lenders/questions/can-a-lender-accept-contributed-equity-in-the-form-of-existing-machinery-valued-by-an-inte"},{"question":"What if a lender's internal loan review discovers a potential eligibility issue post-closing?","url":"https://dealroom.so/for-lenders/questions/what-if-a-lender-s-internal-loan-review-discovers-a-potential-eligibility-issue-post-closi"},{"question":"Can an SBA loan finance a partner buyout if we've only used an internal valuation?","url":"https://dealroom.so/sba-7a/questions/can-an-sba-loan-finance-a-partner-buyout-if-we-ve-only-used-an-internal-valuation"},{"question":"What are common reasons for significant delays in the SBA's *internal* review and authorization of a loan?","url":"https://dealroom.so/sba-7a/questions/what-are-common-reasons-for-significant-delays-in-the-sba-s-internal-review-and-authorizat"},{"question":"What information on SBA Form 1919 must be consistent with the lender's internal credit memo and E-Tran?","url":"https://dealroom.so/for-lenders/questions/what-information-on-sba-form-1919-must-be-consistent-with-the-lender-s-internal-credit-mem"},{"question":"How long does the SBA's internal review and approval process take after the lender submits my complete application?","url":"https://dealroom.so/sba-7a/questions/how-long-does-the-sba-s-internal-review-and-approval-process-take-after-the-lender-submits"}]},"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 — Internal Appraisal","url":"https://dealroom.so/glossary/internal-appraisal","source_type":"DealRoom Data"}}