Glossary · People and paperwork
Independent appraiser(Appraiser)
In short
This is a third-party professional hired to provide an unbiased valuation of business assets, real estate, or the business itself. The SBA requires valuations from an independent appraiser to ensure fair market value.
What it means in a deal
For real estate and sometimes for the business itself, the lender will hire an independent appraiser to determine the fair market value. This appraisal ensures the collateral being pledged is valued correctly and supports the loan amount. You pay for this report.
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 Independent appraiser
- When is an independent business valuation required for a partner buyout?
- 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?
- How long does an independent business valuation typically take for a $1.5 million acquisition?
- Does the SBA require an independent business appraisal for a business acquisition costing $400,000?
- When is an independent business valuation mandatory for a 7(a) change of ownership loan?
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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