# Does an SBA business purchase require an independent valuation?

**Short answer:** Usually yes. SOP 50 10 8.1 requires a business valuation by a Qualified Source. If the Business Purchase Price is $350,000 or less and buyer and seller have no close relationship, the lender may value it itself. Source: App. 15, Para. C.1.a.

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Last checked: 2026-11-08

An independent valuation is required unless a narrow exception applies. SOP 50 10 8.1, Appendix 15, Para. C.1.a, calls the value of the business the key component of any change of ownership analysis.

## Who can do it

A Qualified Source regularly receives pay for business valuations and holds one of these credentials:

- Accredited Senior Appraiser (ASA), American Society of Appraisers
- Certified Business Appraiser (CBA), Institute of Business Appraisers
- Accredited in Business Valuation (ABV), American Institute of Certified Public Accountants
- Certified Valuation Analyst (CVA), National Association of Certified Valuation Analysts
- Business Certified Appraiser (BCA), International Society of Business Appraisers

That person must be independent of loan production and approval, with no appearance of a conflict.

## Who orders it

The lender does. The valuation must be requested by and prepared for the lender. A report prepared for you or the seller cannot be used.

## The exceptions

If the Business Purchase Price is $350,000 or less, the lender may do its own valuation unless buyer and seller have a close relationship. On employee stock ownership plan (ESOP) loans, the lender may use the valuation the ESOP obtained under Employee Retirement Income Security Act (ERISA) (Section A, Ch. 2, Para. B).

## Who pays

The cost may be passed to the borrower. Money you spend on the report can count toward your equity injection (Para. C.1).

## Sources

- [SOP 50 10 8.1, App. 15, Para. C.1.a (pp. 371-372)](https://legacy.sba.gov/sites/default/files/2026-10/SOP%2050%2010%208.1%20Technical%20Policy%20Updates%20effective%20%2010.1.2026.docx)
- [SOP 50 10 8.1, App. 15, Para. C.1 (p. 371)](https://legacy.sba.gov/sites/default/files/2026-10/SOP%2050%2010%208.1%20Technical%20Policy%20Updates%20effective%20%2010.1.2026.docx)
- [SOP 50 10 8.1, Sec. A, Ch. 2, Para. B (about p. 46)](https://legacy.sba.gov/sites/default/files/2026-10/SOP%2050%2010%208.1%20Technical%20Policy%20Updates%20effective%20%2010.1.2026.docx)
- [SOP 50 10 8.1, Sec. B, Ch. 2, Para. A.2 (p. 125)](https://legacy.sba.gov/sites/default/files/2026-10/SOP%2050%2010%208.1%20Technical%20Policy%20Updates%20effective%20%2010.1.2026.docx)