{"ok":true,"canonical_url":"https://dealroom.so/glossary/qualified-independent-business-valuation","api_url":"https://dealroom.so/api/public/glossary/qualified-independent-business-valuation","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":"qualified-independent-business-valuation","term":"Qualified, independent business valuation","group":"Reading the business","definition":"An official report by an unbiased expert estimating the fair market value of the business. The SBA requires this for certain loan sizes to ensure you're not overpaying.","what_it_means":"For loans over $500,000, the SBA requires a qualified, independent business valuation. This valuation will be ordered by your lender and paid for by you, providing an objective assessment of the business's worth and supporting the purchase price.","url":"https://dealroom.so/glossary/qualified-independent-business-valuation","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"},{"slug":"sop-50-10","term":"SOP 50 10","url":"https://dealroom.so/glossary/sop-50-10"}],"related_questions":[{"question":"When is an independent business valuation required for a partner buyout?","url":"https://dealroom.so/sba-7a/questions/when-is-an-independent-business-valuation-required-for-a-partner-buyout"},{"question":"How long does an independent business valuation typically take for a $1.5 million acquisition?","url":"https://dealroom.so/sba-7a/questions/how-long-does-an-independent-business-valuation-typically-take-for-a-1-5-million-acquisiti"},{"question":"When is an independent business valuation mandatory for a 7(a) change of ownership loan?","url":"https://dealroom.so/for-lenders/questions/when-is-an-independent-business-valuation-mandatory-for-a-7-a-change-of-ownership-loan"},{"question":"When is an independent business valuation required for an SBA 7(a) acquisition, especially for related party transactions?","url":"https://dealroom.so/sba-7a/questions/when-is-an-independent-business-valuation-required-for-an-sba-7-a-acquisition-especially-f"},{"question":"When must a lender obtain an independent business valuation for a change-of-ownership between $250,000 and $500,000?","url":"https://dealroom.so/for-lenders/questions/when-must-a-lender-obtain-an-independent-business-valuation-for-a-change-of-ownership-betw"},{"question":"What type of independent valuation is required for non-cash assets to count as equity injection?","url":"https://dealroom.so/sba-7a/questions/what-type-of-independent-valuation-is-required-for-non-cash-assets-to-count-as-equity-inje"}]},"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 — Qualified, independent business valuation","url":"https://dealroom.so/glossary/qualified-independent-business-valuation","source_type":"DealRoom Data"}}