{"ok":true,"canonical_url":"https://dealroom.so/glossary/residual-value","api_url":"https://dealroom.so/api/public/glossary/residual-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":"residual-value","term":"Residual Value","aka":"Salvage Value","group":"Reading the business","definition":"This is the estimated value of an asset at the end of its useful life or a specific period. It's often used in equipment leasing or depreciation calculations.","what_it_means":"While less directly critical for the initial loan underwriting, understanding the residual value of significant equipment can help you assess the true cost of ownership and future capital expenditure needs. An appraiser might factor this in when valuing fixed assets that serve as collateral.","url":"https://dealroom.so/glossary/residual-value","official_sources":[],"related":[{"slug":"appraisal","term":"Appraisal","url":"https://dealroom.so/glossary/appraisal"},{"slug":"useful-life","term":"Useful life","url":"https://dealroom.so/glossary/useful-life"},{"slug":"collateral","term":"Collateral","url":"https://dealroom.so/glossary/collateral"}],"related_questions":[{"question":"What if the primary business assets are specialized machinery with limited resale value?","url":"https://dealroom.so/sba-7a/questions/what-if-the-primary-business-assets-are-specialized-machinery-with-limited-resale-value"},{"question":"How does the SBA evaluate the value of contributed equipment for equity injection?","url":"https://dealroom.so/for-lenders/questions/how-does-the-sba-evaluate-the-value-of-contributed-equipment-for-equity-injection"},{"question":"What if the value of my stock portfolio (for equity injection) drops before closing?","url":"https://dealroom.so/sba-7a/questions/what-if-the-value-of-my-stock-portfolio-for-equity-injection-drops-before-closing"},{"question":"When acquiring a business, can an SBA loan finance 100% of the goodwill value?","url":"https://dealroom.so/sba-7a/questions/when-acquiring-a-business-can-an-sba-loan-finance-100-of-the-goodwill-value"},{"question":"How does the SBA typically value goodwill in a business acquisition for lending purposes?","url":"https://dealroom.so/sba-7a/questions/how-does-the-sba-typically-value-goodwill-in-a-business-acquisition-for-lending-purposes"},{"question":"How does a lender determine the fair market value of business equipment used as collateral?","url":"https://dealroom.so/sba-7a/questions/how-does-a-lender-determine-the-fair-market-value-of-business-equipment-used-as-collateral"}]},"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 — Residual Value","url":"https://dealroom.so/glossary/residual-value","source_type":"DealRoom Data"}}