Glossary · Reading the business
Broker Price Opinion
In short
An estimate of a property's value by a real estate broker, less formal than an appraisal. Lenders might use it for initial assessments or for smaller, non-real estate collateral.
What it means in a deal
While not a substitute for a full appraisal on significant real estate collateral, a broker price opinion (BPO) can provide a quick, informal valuation. Some lenders might use BPOs for non-real estate collateral or as a preliminary step in valuation. Do not rely solely on a BPO for critical asset valuation; demand a formal appraisal when appropriate.
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 Broker Price Opinion
- Can I use pre-closing expenses, like a business broker's fee, as part of my equity injection?
- What is the primary role of my business broker or M&A advisor in the SBA 7(a) loan process?
- What role does the business broker play in expediting or delaying the SBA 7(a) loan application process for an acquisition?
- What if the business valuation is insufficient to support the purchase price?
- What happens if my business valuation comes in lower than the purchase price?
- How is the purchase price determined for an SBA 7(a) partner buyout?
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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