Glossary · Reading the business
In short
The process of determining the market value of assets pledged as security for a loan. This helps the lender assess their recovery potential if the loan defaults.
For an SBA 7(a) loan, your lender will get an independent appraisal or valuation of any real estate, machinery, equipment, or other significant assets used as collateral. This valuation influences the loan amount and confirms there's sufficient security, even if a collateral shortfall exists.
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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