Glossary · Reading the business
Appraised value
In short
This is the independent expert's opinion of a business's or asset's fair market value. For an SBA loan, the appraised value helps justify the purchase price and ensure adequate collateral.
What it means in a deal
For business acquisitions, especially larger ones, the SBA often requires an independent business valuation or appraisal. This valuation impacts the loan amount and collateral requirements. Ensure the purchase price aligns with the appraised value to avoid a collateral shortfall or needing more equity.
Official sources
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.
Related terms
Common questions about Appraised value
- What happens if the appraised value of the collateral declines significantly after the loan is disbursed?
- How does the appraised value of goodwill impact the overall structure and terms of my SBA 7(a) loan?
- Can I use appraised business equipment or other non-cash assets as part of my equity injection?
- If I'm buying out a partner, does the business valuation need to be formally appraised for the SBA?
- What if the primary business assets are specialized machinery with limited resale value?
- How does the SBA evaluate the value of contributed equipment for equity injection?
Defined by CapBench 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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