Glossary · Reading the business
In short
An independent appraisal the lender orders. The SBA loan can't finance any amount above it.
For SBA deals over a set threshold, the lender must order an independent business valuation from a qualified appraiser. If the appraised value comes in below the purchase price, the SBA loan can only be sized against the appraised value — not the price you agreed to pay. This creates a gap you'd need to fund with additional injection. Experienced buyers sometimes commission their own valuation before going to contract to avoid surprises.
SOP 50 10 — Lender and Development Company Loan Programs
U.S. Small Business Administration · SBA Standard Operating Procedure
Last checked 2026-06-14. 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 2026-06-14 · 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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