Glossary · Reading the business
In short
A formal document from an independent appraiser that estimates the fair market value of the business you intend to buy. For an SBA loan, it's often a mandatory document to justify the purchase price.
The SBA requires a valuation report if the total financing amount (including any seller notes) exceeds $500,000, or if there's a perceived close relationship between you and the seller. Review this report carefully to understand the methodologies used, the underlying assumptions, and any adjustments made to the business's financial statements.
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.
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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