Glossary · Reading the business
In short
A professional valuation of a business's machinery and equipment. It determines the fair market value and liquidation value of these assets, which are often pledged as collateral.
For deals with substantial equipment, your lender will require an equipment appraisal to determine its value as collateral for the loan. This appraisal will often provide both fair market value and orderly liquidation value. Scrutinize this report to ensure the equipment is in good condition and its valuation aligns with your expectations, as it secures a portion of your loan.
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