SBA 7(a) Q&A
Short answer
For an SBA 7(a) acquisition loan over $500,000, a formal, independent business valuation performed by a qualified appraiser is required.
The SBA mandates an independent business valuation for all change of ownership loans (including acquisitions) with a total loan amount exceeding $500,000. This valuation ensures that the purchase price is reasonable and does not exceed the fair market value of the business, protecting against over-leveraging.
If you are acquiring a business for $750,000, a certified valuation professional must conduct a comprehensive appraisal. This report will justify the purchase price by analyzing the business's assets, liabilities, earnings, and market conditions, supporting your SBA 7(a) loan application.
13 CFR Part 120 — Business Loans
Office of the Federal Register · Federal regulation
7(a) Loan Program — Terms, Conditions, and Eligibility
U.S. Small Business Administration · Official SBA source
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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