Glossary · Reading the business
Face value
In short
The nominal or stated value of a financial instrument, asset, or debt, without considering market fluctuations or present value. As a buyer, understand that face value doesn't always reflect true market value or your actual liability.
What it means in a deal
For items like promissory notes or insurance policies, face value is the amount printed on the document. When evaluating assets or liabilities, you need to look beyond the face value and consider their actual market worth, collectibility, or current repayment obligations, especially during due diligence.
Related terms
Common questions about Face value
- If I refinance my SBA 7(a) loan after 5 years, do I still face prepayment penalties?
- Will I face a penalty if I pay off my SBA 7(a) loan earlier than planned?
- 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?
- What if the value of my stock portfolio (for equity injection) drops before closing?
- When acquiring a business, can an SBA loan finance 100% of the goodwill value?
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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