For SBA lenders
Short answer
A business valuation is required for all change of ownership transactions when the loan amount exceeds $500,000, and it must be performed by a qualified, independent appraiser.
SOP 50 10 mandates an independent business valuation for all change of ownership transactions where the loan amount exceeds $500,000. The valuation must be performed by a qualified appraiser with no conflict of interest, ensuring the purchase price is reasonable and supported.
A lender processes a $750,000 7(a) loan for a business acquisition. Because the loan amount is over $500,000, they engage an independent, qualified business appraiser to provide a comprehensive valuation report.
13 CFR Part 120 — Business Loans
Office of the Federal Register · Federal regulation
SOP 50 10 - Lender and Development Company Loan Programs
Standard 7(a) Authorization File Library
Last checked 2026-06-13. Official sources control — verify before relying on any rule for a live deal.
Last reviewed 2026-06-13 · SBA sources checked through 2026-06-13. DealRoom analysis of public SBA 7(a) lending records (FY2020–present). Grounded in the current SBA rulebook; verify against the official sources above before relying on it for a live deal. Not legal, tax, or financial advice, and not an approval decision.
More on change-of-ownership
Terms in this answer
Pre-qualify your SBA 7(a) deal
Tell us the business, the price, and where you are — we'll point you to the lenders most likely to fund a deal like yours and flag anything that trips up approval.
Free · No documents · Usually same-day