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.
“I have retained John several times to provide business valuations for estate and business planning clients. John is knowledgeable and detail-oriented. He keeps me updated throughout the valuation process and always provides a great work product.”
“John is a man of honor, respect and integrity. He goes above and beyond for his clients with honesty and accuracy. I look to John with high regards and much respect.”
“It is a joy to work with John because he does what he says he will do, communicates status with the client & advisory team, follows up as necessary with additional questions, produces a complete, professional product and delivers on time. He knows his business and, for the icing on the cake, he is a great person!”
“John worked extremely well with a client that needed a business appraisal for estate purposes, but was extremely distraught and as such no so motivated. John, with highest quality, compassion and professionalism got the appraisal done. Thank you again, John!”
“John Mack has done excellent business and estate planning appraisal work for me and my clients. He has a CPA and appraiser background, he stays up with current law in this area to comply with IRS requirements, and understands the issues for advanced estate planning.”