Glossary · Reading the business
In short
A valuation of a business's machinery and equipment by an unbiased third party. This appraisal determines the fair market value of these assets, which is crucial for collateral in an SBA loan.
For an SBA 7(a) loan, if equipment is significant collateral, the lender will likely require an independent equipment appraisal to determine its orderly liquidation value. This ensures the collateral adequately supports the loan. You'll use this to confirm the value of assets you're acquiring and what the bank sees as security.
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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