{"ok":true,"canonical_url":"https://dealroom.so/glossary/net-book-value","api_url":"https://dealroom.so/api/public/glossary/net-book-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":"net-book-value","term":"Net book value","group":"Reading the business","definition":"This is the value of an asset or a company's total assets less its liabilities, as recorded on its balance sheet. It reflects historical cost less accumulated depreciation, not necessarily market value.","what_it_means":"When evaluating a business, the net book value of its assets (like equipment or real estate) is important but often differs from fair market value. For an SBA loan, collateral is typically valued at fair market value for the collateral analysis, not net book value. Understand the difference: book value is an accounting concept, market value is what it's actually worth today.","url":"https://dealroom.so/glossary/net-book-value","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":"balance-sheet","term":"Balance Sheet","url":"https://dealroom.so/glossary/balance-sheet"},{"slug":"business-valuation","term":"Business valuation","url":"https://dealroom.so/glossary/business-valuation"},{"slug":"collateral","term":"Collateral","url":"https://dealroom.so/glossary/collateral"},{"slug":"fair-market-value","term":"Fair market value","url":"https://dealroom.so/glossary/fair-market-value"}],"related_questions":[{"question":"What is the specific personal net worth threshold that triggers a personal guaranty requirement for an owner?","url":"https://dealroom.so/sba-7a/questions/what-is-the-specific-personal-net-worth-threshold-that-triggers-a-personal-guaranty-requir"},{"question":"Can I use an SBA 7(a) loan to purchase a business with a negative net worth?","url":"https://dealroom.so/sba-7a/questions/can-i-use-an-sba-7-a-loan-to-purchase-a-business-with-a-negative-net-worth"},{"question":"Can an SBA 7(a) loan be used to purchase a business with a negative net worth?","url":"https://dealroom.so/sba-loans/basics/can-an-sba-7-a-loan-be-used-to-purchase-a-business-with-a-negative-net-worth"},{"question":"Can an SBA 7(a) loan be used to purchase a business with a negative tangible net worth?","url":"https://dealroom.so/sba-7a/questions/can-an-sba-7-a-loan-be-used-to-purchase-a-business-with-a-negative-tangible-net-worth"},{"question":"What if my business has a negative net worth? Can I still get an SBA 7(a) loan?","url":"https://dealroom.so/sba-loans/basics/what-if-my-business-has-a-negative-net-worth-can-i-still-get-an-sba-7-a-loan"},{"question":"What is the maximum net worth requirement for a business to qualify as \"small\" for a 7(a) loan?","url":"https://dealroom.so/for-lenders/questions/what-is-the-maximum-net-worth-requirement-for-a-business-to-qualify-as-small-for-a-7-a-loa"}]},"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 — Net book value","url":"https://dealroom.so/glossary/net-book-value","source_type":"DealRoom Data"}}