# What are SBA's rules for a commercial real estate appraisal?

**Short answer:** A 7(a) appraiser must be independent and state-licensed or certified, follow Uniform Standards of Professional Appraisal Practice (USPAP) and date the report within 12 months of the guaranty application. Above $1,000,000, the appraiser must be state-certified. Source: SOP 50 10 8.1, App. 19, Para. A.

Canonical page: https://www.sbaexpress.loans/answers/sba-commercial-real-estate-appraisal-requirements/
Last checked: 2026-11-08

The appraiser must be independent, properly licensed and engaged for the lender. SOP 50 10 8.1, Appendix 19, Para. A, sets the rules for a 7(a) commercial real estate appraisal under 13 CFR § 120.160(b).

## The appraiser

- State-licensed or State-certified, and State-certified when estimated value exceeds $1,000,000.
- Independent of loan production and approval, with no appearance of a conflict of interest.

## The report

- A USPAP Appraisal Report, dated within 12 months of the application for guaranty.
- It must identify the lender as client or intended user. An appraisal prepared for the seller or applicant cannot be used. The cost may be passed to you.
- It may not include the contributory value of rental income or intangible assets.

## New construction and renovation

The appraisal must estimate market value on completion for new construction or a substantial renovation. Substantial means rehabilitation costs above one third of the purchase price or fair market value. An existing building needing no construction is valued as-is.

After completion, the lender needs a statement that construction materially conforms to plans. Without one, it needs a new appraisal.

## On a 504

SBA requires an appraisal when estimated value exceeds $500,000. Below that, listed cases still need one and others need an evaluation. The appraisal must identify SBA as client or intended user (Section C, Ch. 1, Para. E.2.b).

## Sources

- [SOP 50 10 8.1, App. 19, Para. A, Commercial real estate appraisal requirements (about pp. 405-407)](https://legacy.sba.gov/sites/default/files/2026-10/SOP%2050%2010%208.1%20Technical%20Policy%20Updates%20effective%20%2010.1.2026.docx)
- [13 CFR § 120.160(b)](https://www.ecfr.gov/current/title-13/section-120.160)
- [SOP 50 10 8.1, Sec. C, Ch. 1, Para. E.2.b (about pp. 254-255)](https://legacy.sba.gov/sites/default/files/2026-10/SOP%2050%2010%208.1%20Technical%20Policy%20Updates%20effective%20%2010.1.2026.docx)