Glossary · Reading the business
In short
A recent professional valuation of real estate or equipment to determine its fair market value. Lenders require this to assess collateral for an SBA loan.
For any real estate or significant equipment serving as collateral, the SBA lender will require a current appraisal performed by an independent, qualified appraiser. This ensures an accurate and unbiased valuation of the assets pledged. Factor the cost of these appraisals into your closing expenses.
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.
Free · No documents · Usually same-day