Glossary · Reading the business
In short
The most probable price a property or business would bring in a competitive and open market under all conditions requisite to a fair sale.
When buying a business with an SBA loan, the lender will require a business valuation or appraisal to determine the market value. This ensures the purchase price is reasonable and aligns with the collateral value. Pay attention to how the appraiser arrives at this value and be prepared to justify your offer against it.
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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