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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 October 1, 2010, have further clarified the requirements for business appraisals for SBA lending purposes. The two key points of the new SOP requirements are summarized below:

1. Starting October 1, 2010, every SBA-guaranteed business acquisition loan being financed over $250,000 (excluding real estate and/or equipment being financed) 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 either (1) a licensed Certified Public Accountant (CPA) that performs the business valuation in accordance with the "Statement on Standards for Valuation Services" published by the American Institute of Certified Public Accountants (AICPA); or is accredited by one of the following recognized organizations:

• 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.
• Accredited Valuation Analyst (AVA) accredited through the National Association of Certified Valation Analysts.

Personally, it is my view that if you are using a CPA, they should also be credentialed as an ABV business valuation expert as if they are serious about doing valuation they will have invested in the additional training offered by the AICPA to obtain this designation.

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.