Days before SOP 50 10 8.1 took effect on October 1, the SBA issued a technical update that walks back its “no exceptions” stance on change-of-ownership valuations. Under the revised Appendix 15, lenders may once again perform their own business valuation when the business purchase price is $350,000 or less, provided the buyer and seller are not closely related. The update also restores 7(a) Small and SBA Express loans for acquisitions. The debt service coverage floors still apply.
For SBA lenders, that means more valuation work is back in-house, and your file has to stand up on its own. When real estate is part of the deal, Eval.com can help. Our evaluations and validations of previous appraisals or evaluations give your internal analysis an independent, documented check on the real estate value, typically within five business days.
Financing small business acquisitions this quarter? Contact Eval.com at orders@eval.com to talk through how evaluations and validations fit your SBA workflow.