Glossary · Doing the deal
In short
Costs for a professional to determine the fair market value of the business. Lenders often require this to justify the loan amount and ensure the purchase price is reasonable.
The SBA requires a business valuation if the loan amount exceeds certain thresholds or if there's a close relationship between buyer and seller. This independent valuation confirms the business is worth the purchase price. Factor this fee into your total project costs; it's a critical part of due diligence.
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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