Glossary · Reading the business
In short
This is the appraised value of specific assets, like equipment or real estate, minus any existing liens or encumbrances against them. It's the true unencumbered value.
Lenders use this to assess the collateral available for your loan. An independent appraiser determines the fair market value of assets. The "net" part is crucial because the SBA needs to secure its lien position, so only unencumbered value counts towards meeting collateral requirements.
13 CFR Part 120 — Business Loans
Office of the Federal Register · Federal regulation
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.
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