{"ok":true,"canonical_url":"https://dealroom.so/sba-7a/questions/what-type-of-property-appraisal-is-required-if-my-1-2-million-sba-loan-includes-commercial","api_url":"https://dealroom.so/api/public/questions/what-type-of-property-appraisal-is-required-if-my-1-2-million-sba-loan-includes-commercial","question":"What type of property appraisal is required if my $1.2 million SBA loan includes commercial real estate?","topic":"Real estate","audience":"borrower","bot_mode":"buyer","short_answer":"For a $1.2 million loan including commercial real estate, a full narrative appraisal performed by an independent, state-licensed or certified appraiser is required.","rule":"SBA rules require a full narrative appraisal for real estate included in a loan, especially for amounts over $500,000 or when specific environmental concerns exist. The appraisal must be conducted by an independent appraiser licensed or certified in the state where the property is located, adhering to USPAP (Uniform Standards of Professional Appraisal Practice) guidelines. The appraisal ensures the real estate's value supports the loan amount.","example":"A buyer finances a $1.2 million business acquisition, including a $400,000 commercial building. The lender commissions a full narrative appraisal for the building to determine its fair market value and ensure it provides adequate collateral for the loan.","what_lenders_check":"Lenders need to ensure the appraisal accurately reflects the property's market value and adheres to all SBA and regulatory guidelines. They review the appraiser's qualifications and the appraisal report for any red flags or inconsistencies.","required_facts":["Commercial real estate","Full narrative appraisal","Independent appraiser","USPAP guidelines","Collateral value"],"source_families":["SOP 50 10 - Lender and Development Company Loan Programs","13 CFR Part 120 - Business Loans"],"official_sources":[{"title":"SOP 50 10 - Lender and Development Company Loan Programs","url":"https://www.sba.gov/sites/default/files/2025-05/SOP%2050%2010%208%20Technical%20Updates%20effective%206.1.2025.docx"},{"title":"13 CFR Part 120 - Business Loans","url":"https://www.ecfr.gov/current/title-13/chapter-I/part-120"}],"related_questions":[{"question":"Can I include the purchase of commercial real estate, where the business operates, within the same SBA 7(a) loan for a $2 million deal?","url":"https://dealroom.so/sba-7a/questions/can-i-include-the-purchase-of-commercial-real-estate-where-the-business-operates-within-th"},{"question":"Can I use an SBA 7(a) loan to purchase the real estate where the business operates?","url":"https://dealroom.so/sba-7a/questions/can-i-use-an-sba-7-a-loan-to-purchase-the-real-estate-where-the-business-operates"},{"question":"What happens if the business I am acquiring is located in a leased property?","url":"https://dealroom.so/sba-7a/questions/what-happens-if-the-business-i-am-acquiring-is-located-in-a-leased-property"},{"question":"What kind of environmental due diligence is required if the business real estate is included in the loan?","url":"https://dealroom.so/sba-7a/questions/what-kind-of-environmental-due-diligence-is-required-if-the-business-real-estate-is-includ"},{"question":"Can an SBA 7(a) loan be used to buy a business that has environmental issues?","url":"https://dealroom.so/sba-7a/questions/can-an-sba-7-a-loan-be-used-to-buy-a-business-that-has-environmental-issues"},{"question":"If the business leases its operational property, can an SBA 7(a) loan still finance the acquisition?","url":"https://dealroom.so/sba-7a/questions/if-the-business-leases-its-operational-property-can-an-sba-7-a-loan-still-finance-the-acqu"}],"related_terms":[{"term":"Commercial Appraisal","url":"https://dealroom.so/glossary/commercial-appraisal"},{"term":"Commercial loan","url":"https://dealroom.so/glossary/commercial-loan"},{"term":"Commercial real estate appraisal","url":"https://dealroom.so/glossary/commercial-real-estate-appraisal"},{"term":"Required guarantor","url":"https://dealroom.so/glossary/required-guarantor"},{"term":"SBA Loan","url":"https://dealroom.so/glossary/sba-loan"},{"term":"Ineligible business type","url":"https://dealroom.so/glossary/ineligible-business-type"}],"related_tools":[{"name":"SBA 7(a) payment & fee calculator","url":"https://dealroom.so/sba-7a/calculator"},{"name":"Find an active SBA 7(a) lender","url":"https://dealroom.so/lenders"}],"data_freshness":{"last_reviewed":"2026-06-14","sba_rule_sources_checked_through":"2026-06-14"},"citation":{"label":"DealRoom.so SBA 7(a) Q&A","url":"https://dealroom.so/sba-7a/questions/what-type-of-property-appraisal-is-required-if-my-1-2-million-sba-loan-includes-commercial","source_type":"DealRoom Q&A"},"caveats":["Grounded in the current SBA rulebook; verify against official sources before relying on it for a live deal.","Not legal, tax, or financial advice and not an approval decision."]}