Glossary · Reading the business
Commercial Appraisal
In short
This is a professional assessment of the market value of commercial real estate or business assets. Buyers care because it determines the collateral value available to secure your SBA loan, ensuring the lender has adequate security.
What it means in a deal
If your acquisition includes real estate, a commercial appraisal will be required by the lender to establish its fair market value. For business assets, a business valuation or equipment appraisal might be needed. The appraised value often dictates the maximum loan amount the lender can offer for that collateral.
Official sources
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.
Related terms
Common questions about Commercial Appraisal
- What type of property appraisal is required if my $1.2 million SBA loan includes commercial real estate?
- Is an independent appraisal always required when an acquisition includes significant goodwill?
- When is an independent appraisal required for non-real estate business assets being acquired?
- Does the SBA require an independent business appraisal for a business acquisition costing $400,000?
- Can an SBA 7(a) loan cover the cost of a business valuation or appraisal?
- When is a business appraisal required for a change of ownership transaction exceeding $500,000?
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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