Glossary · Reading the business
MAI Appraisal
In short
An appraisal of commercial real estate performed by a Member of the Appraisal Institute (MAI), indicating a higher standard of expertise. It provides a reliable valuation for property collateral.
What it means in a deal
If your deal involves owner-occupied commercial real estate as collateral, the SBA lender will require an MAI appraisal. This ensures a credible, independent valuation of the property's fair market value. Review this appraisal closely during due diligence to confirm the real estate's value and condition, as it directly impacts your collateral position.
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 MAI Appraisal
- 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?
- When is a separate goodwill appraisal necessary for a business acquisition loan exceeding $1,000,000?
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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