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• Estate Tax and Gift Tax Valuation
• Small Business Administration (SBA) Financing
• Exit Planning Business Valuations
• ESOP Appraisals
• Merger/Acquisition Valuation
• SFAS 141 and 142 Valuation
• Additional Services

Small Business Administration Financing

Current SBA regulations known as "SOP 50-10(5)" that went into effect August 1, 2008, have greatly increased the requirements for business appraisals for SBA lending purposes. The two key points of the new SOP requirements are summarized below:

1. Starting August 1, 2008, every SBA-guaranteed business acquisition loan over $350,000 MUST be supported by an independent appraisal performed by a "qualified source". This also applies to any size loan where there is a close relationship between the buyer and seller.

2. A "qualified source" is now defined as an individual who regularly receives compensation for business valuations and is accredited by a recognized organization such as:

• Accredited Senior Appraiser (ASA) accredited through the American Society of Appraisers.
• Certified Business Appraiser (CBA) accredited through the Institute of Business Appraisers
• Accredited in Business Valuation (ABV) accredited through the American Institute of Certified Public Accountants.
• Certified Valuation Analyst (CVA) accredited through the National Association of Certified Valuation Analysts.

While it is not formally stated, it is commonly viewed that the accreditation should be from a business appraisal organization that specializes in providing business valuation training. Thus, accreditations such as an MBA or CPA are not recognized as "qualified sources". This view is supported by the fact that the American Institute of Certified Public Accountants (AICPA) has developed their own business valuation credential (the ABV listed above) as the AICPA recognizes that the training and education required to become a CPA does not provide adequate business valuation training.

At Mack Business Appraisals, LLC, all of our SBA business appraisals are certified by a valuation expert accredited with the ASA and CBA business valuation accreditations. We work with numerous banks and other financial institutions located throughout the United States to provide SBA business valuation services. Feel free to call today to let us help you meet your SBA business valuation needs.