Glossary · Reading the business
In short
This is a professional valuation of a commercial property, determining its fair market value based on various factors. It's critical if the business owns its real estate.
If the business you're buying includes commercial real estate, an SBA-required appraisal will establish its value. This value is key for collateralizing your loan and ensuring the purchase price is justified. The appraisal must be USPAP compliant and ordered by the lender.
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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