Current SBA regulations known as “SOP 50-10(5)” provide the following business valuation requirements:
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 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 Valuation Analysts.
At Mack Business Appraisals, LLC, all of our SBA business appraisals are certified by a valuation expert accredited with the relevant 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.