Glossary · Reading the business
In short
An independent valuation of the assets pledged as collateral for your loan, determining their fair market value. This ensures the lender knows the recovery value in case of default.
For your SBA 7(a) loan, especially if there's significant real estate or equipment pledged, a collateral appraisal will be required. The appraisal's valuation impacts the lender's collateral analysis and can influence loan terms or additional collateral requirements. Ensure you understand its findings.
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.
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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