Glossary · Reading the business
Third-Party Report
In short
This is a report from an independent professional evaluating a specific aspect of the business, like an appraisal or environmental assessment. Lenders often require these to verify assets or uncover risks.
What it means in a deal
Expect to pay for third-party reports such as business valuations, appraisals of real estate or equipment, and environmental site assessments. These reports provide objective data for the lender's underwriting and help you understand the true condition and value of the assets you're acquiring.
Official sources
13 CFR Part 120 — Business Loans
Office of the Federal Register · Federal regulation
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 Third-Party Report
- Can a third-party loan, not from the seller, count towards the minimum equity injection?
- What specific language must a non-SBA third-party standby agreement include to ensure eligibility?
- How does a lender verify the full standby status of a non-SBA third-party debt?
- Can an SBA 7(a) loan finance the purchase of intellectual property rights from a third party?
- What are the eligibility requirements for funds borrowed from a third party to count as equity injection?
- Can I use an SBA 7(a) loan to purchase a business from an unrelated third party?
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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