SBA 7(a) Q&A
Short answer
Yes, generally, if real estate is part of the acquisition, an appraisal is required regardless of its percentage of the total deal, especially if it serves as primary collateral.
SBA rules require a real estate appraisal by a qualified independent appraiser for properties used to secure an SBA loan, to ensure the value supports the collateral position. There isn't typically an exemption based on its percentage of the overall transaction cost.
A $1.5 million business acquisition includes a small office condo valued at $150,000. Even though it's only 10% of the deal, a separate real estate appraisal will be required for that condo.
13 CFR Part 120 — Business Loans
Office of the Federal Register · Federal regulation
SOP 50 10 - Lender and Development Company Loan Programs
Last checked 2026-06-13. Official sources control — verify before relying on any rule for a live deal.
Last reviewed 2026-06-13 · SBA sources checked through 2026-06-13. DealRoom analysis of public SBA 7(a) lending records (FY2020–present). Grounded in the current SBA rulebook; verify against the official sources above before relying on it for a live deal. Not legal, tax, or financial advice, and not an approval decision.
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