Glossary · Reading the business
Internal Appraisal
In short
This is an estimate of a business's or asset's value performed by the buyer or seller, not an independent third party. It serves as an initial assessment, often for negotiation purposes.
What it means in a deal
You might conduct an internal appraisal to gauge a reasonable offer price before engaging a professional appraiser. While useful for your own due diligence and crafting an LOI, an internal appraisal will not satisfy the SBA's requirement for an independent business valuation if the loan amount exceeds a certain threshold or if specific assets like real estate are involved.
Related terms
Common questions about Internal Appraisal
- Can a lender accept contributed equity in the form of existing machinery valued by an internal appraisal?
- What if a lender's internal loan review discovers a potential eligibility issue post-closing?
- Can an SBA loan finance a partner buyout if we've only used an internal valuation?
- What are common reasons for significant delays in the SBA's *internal* review and authorization of a loan?
- What information on SBA Form 1919 must be consistent with the lender's internal credit memo and E-Tran?
- How long does the SBA's internal review and approval process take after the lender submits my complete application?
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.
Pressure-test the numbers before you make an offer
Send us the asking price and the seller's cash flow — we'll show whether the deal services SBA debt and where the add-backs are likely to hold up.
Free · No documents · Usually same-day
Backed by data on 1,000+ SBA lenders and 300,000+ funded deals. Your details go only to lending partners you ask to be matched with — never sold to advertisers.