Glossary · Reading the business
In short
This is the independent expert's opinion of a business's or asset's fair market value. For an SBA loan, the appraised value helps justify the purchase price and ensure adequate collateral.
For business acquisitions, especially larger ones, the SBA often requires an independent business valuation or appraisal. This valuation impacts the loan amount and collateral requirements. Ensure the purchase price aligns with the appraised value to avoid a collateral shortfall or needing more equity.
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.
Pressure-test the numbers before you make an offer
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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