Glossary · Reading the business
In short
This is a professional assessment of the market value of commercial real estate or business assets. Buyers care because it determines the collateral value available to secure your SBA loan, ensuring the lender has adequate security.
If your acquisition includes real estate, a commercial appraisal will be required by the lender to establish its fair market value. For business assets, a business valuation or equipment appraisal might be needed. The appraised value often dictates the maximum loan amount the lender can offer for that collateral.
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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