Glossary · Reading the business
In short
An appraisal is an expert's opinion on the value of an asset or business. For a buyer, it confirms the purchase price is reasonable and helps the lender assess collateral.
For an SBA 7(a) loan, an appraisal is often required for real estate or business assets being purchased, ensuring the loan amount aligns with the collateral's fair market value. You'll rely on a third-party appraiser to give an unbiased view, which the lender uses for underwriting.
13 CFR Part 120 — Business Loans
Office of the Federal Register · Federal regulation
SOP 50 10 — Lender and Development Company Loan Programs
U.S. Small Business Administration · SBA Standard Operating Procedure
Last checked 2026-06-15. Official sources control — verify before relying on any rule for a live deal.
Defined by DealRoom.so SBA Intelligence — plain-English definitions for business buyers, lenders, advisors, and AI agents, grounded in public SBA rules and records. Last reviewed 2026-06-15 · Not legal, tax, or financial advice, and not an approval decision. Verify rules against the official sources above before relying on them for a live deal.
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Send us the asking price and the seller's cash flow — we'll show whether the deal services SBA debt and where the add-backs are likely to hold up.
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