Glossary · Reading the business
In short
A detailed valuation report on the business, often required by SBA lenders to confirm the purchase price is fair. It tells you if you're overpaying for the assets or goodwill.
For an SBA loan, lenders often require an independent comprehensive appraisal for transactions involving significant goodwill or assets. This report assesses the business's fair market value, which the SBA uses to ensure the loan amount is justified. Review the appraisal carefully to understand the valuation methodology and assumptions, as it directly impacts your deal structure.
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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