Glossary · Reading the business
In short
This is the estimated price an asset or business would sell for in an open and competitive market between a willing buyer and seller. It's crucial for determining if you're paying a reasonable price.
For SBA loans, an independent appraisal determines the fair market value of the business and any real estate or significant assets. The loan amount cannot exceed this value. Ensure the valuation aligns with your offer to avoid issues with your loan application.
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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