Glossary · Reading the business
In short
This is a comprehensive valuation report that details the appraiser's methodology, assumptions, and conclusion of a business's fair market value. As a buyer, you care because it provides an independent assessment of what you're paying for the business.
For larger SBA 7(a) deals, a full narrative business appraisal is often required, particularly when there's significant goodwill or complex assets. This report justifies the purchase price to the lender and helps ensure that the value being financed is supported by market data and accepted valuation principles. Review it carefully to understand the valuation rationale.
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