Glossary · Reading the business
Real Estate Appraisal
In short
A professional valuation of real property, required if real estate is part of the deal or used as collateral. It tells you the market value of the property, which impacts the loan amount and collateral coverage.
What it means in a deal
If the business owns commercial real estate, or if you're using your own real estate as collateral, the SBA lender will require an independent appraisal. This ensures the property's value justifies its role in the loan's collateral. Review it closely to confirm the valuation makes sense and aligns with your understanding of the asset.
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 Real Estate Appraisal
- When is an independent appraisal required for non-real estate business assets being acquired?
- What specific documentation is required to verify equity from a borrower's personal real estate appraisal?
- What type of property appraisal is required if my $1.2 million SBA loan includes commercial real estate?
- Is a separate appraisal required for real estate if it's a small percentage of the total acquisition?
- What are the SBA's requirements for obtaining an independent appraisal of non-real estate business collateral for a 7(a) loan?
- What are the specific triggers for a lender to obtain an independent appraisal of business real estate for a 7(a) loan, based on loan amount thresholds?
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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