Thank you for the opportunity to share some thoughts on SBA business valuation for SBA loans directed at SBA lenders and their advisors.

(Based on a SBA business valuation presentation presented to the Maryland Commercial Lenders Association on September 26, 2018.

Business valuations are all about understanding the drivers that bring value to a business and how valuators are required to measure those drivers.  An important place to start is with the questions;

  • Who is the value is being calculated for?
  • What is the standard of value to be used?
  • What is the purpose of the valuation?
  • Why is the valuation being conducted?

In general, for SBA purposes a third party appraisal is required when financing business sale transactions if:

  • the amount being financed after deducing for the appraised value of equipment and real estate is more than $250,000,
  • there is a close relationship between the buyer and seller – family members / partners /employees, or
  • the lenders internal policies require it.

I hope you enjoy the presentation and learn a few things you can apply tomorrow from it.

Questions or to contact:

Presenter, Greg Caruso, JD, CPA, CVA 609-664-7955


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Harvest Business Advisors provides business brokerage, business valuation, and business succession planning services. We have extensive experience in the information technology and professional services, manufacturing, distribution, and contracting fields. We maintain offices in Maryland, New Jersey and Virginia.
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