Glossary · Reading the business
In short
This is a formal document that estimates the fair market value of a business. Your 7(a) lender will require one to ensure the purchase price is justified.
For any 7(a) acquisition over $500,000, your lender will require an independent business valuation report prepared by a qualified appraiser. This report verifies that the acquisition price is reasonable and that there's sufficient collateral (including goodwill) to support the loan. Review this report carefully to understand the appraiser's methodology and 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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