Glossary · Reading the business
Current Appraisal
In short
A recent professional valuation of real estate or equipment to determine its fair market value. Lenders require this to assess collateral for an SBA loan.
What it means in a deal
For any real estate or significant equipment serving as collateral, the SBA lender will require a current appraisal performed by an independent, qualified appraiser. This ensures an accurate and unbiased valuation of the assets pledged. Factor the cost of these appraisals into your closing expenses.
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 Current Appraisal
- What are the current size standards for a manufacturing business eligibility?
- 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?
- Can I use an SBA 7(a) loan to expand my current business operations?
- What are the current alternative base rate options for variable rate 7(a) loans?
- Does the SBA require an independent business appraisal for a business acquisition costing $400,000?
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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