Glossary · Reading the business
In short
This is an independent estimate of a business's or asset's value, representing the price at which it would change hands between a willing buyer and seller.
For an SBA acquisition loan, an independent Fair Market Valuation of the business is usually required, especially for deals over $250,000. This appraisal helps the lender ensure the purchase price is reasonable and that the business can support the debt. It's a key underwriting component.
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