Glossary · Reading the business
In short
This is a formal document from a qualified appraiser detailing the fair market value of a business, its assets, or real estate. Lenders use it to assess collateral and deal viability.
For an SBA 7(a) loan, an appraisal report is often required for business valuations over a certain threshold or for real estate collateral. It provides an independent opinion of value, which helps the lender determine the loan-to-value ratio and whether the collateral adequately secures the loan. Review it carefully for assumptions.
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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