{"ok":true,"canonical_url":"https://dealroom.so/glossary/valuation-threshold","api_url":"https://dealroom.so/api/public/glossary/valuation-threshold","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":"valuation-threshold","term":"Valuation Threshold","group":"Reading the business","definition":"This is a specific value that triggers certain requirements or reviews for an SBA loan. For a buyer, knowing this helps you anticipate additional lender scrutiny or necessary reports.","what_it_means":"For SBA 7(a) loans, if the total project costs exceed a certain threshold (currently $250,000 for business acquisitions), an independent business valuation is required. If your deal is near this threshold, factor in the cost and time for this valuation to avoid delays.","url":"https://dealroom.so/glossary/valuation-threshold","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":"total-project-costs","term":"Total project costs","url":"https://dealroom.so/glossary/total-project-costs"}],"related_questions":[{"question":"Does the SBA require life insurance for business loans below a certain threshold?","url":"https://dealroom.so/sba-7a/questions/does-the-sba-require-life-insurance-for-business-loans-below-a-certain-threshold"},{"question":"When must a lender require an independent business valuation for a change of ownership 7(a) loan, and what are the specific thresholds?","url":"https://dealroom.so/for-lenders/questions/when-must-a-lender-require-an-independent-business-valuation-for-a-change-of-ownership-7-a"},{"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":"What is the specific threshold for when a prepayment penalty applies to an SBA 7(a) loan?","url":"https://dealroom.so/sba-7a/questions/what-is-the-specific-threshold-for-when-a-prepayment-penalty-applies-to-an-sba-7-a-loan"},{"question":"Does the sunset of SBSS affect the underwriting requirements for standard 7(a) loans above the Small Loan threshold?","url":"https://dealroom.so/for-lenders/questions/does-the-sunset-of-sbss-affect-the-underwriting-requirements-for-standard-7-a-loans-above-"},{"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"}]},"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 — Valuation Threshold","url":"https://dealroom.so/glossary/valuation-threshold","source_type":"DealRoom Data"}}