Glossary · Reading the business
In short
A professional valuation of real property, required if real estate is part of the deal or used as collateral. It tells you the market value of the property, which impacts the loan amount and collateral coverage.
If the business owns commercial real estate, or if you're using your own real estate as collateral, the SBA lender will require an independent appraisal. This ensures the property's value justifies its role in the loan's collateral. Review it closely to confirm the valuation makes sense and aligns with your understanding of the asset.
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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