SBA Update

GCF Valuation works with over 50 national SBA lenders on a regular basis and provides training / consulting to the National Association of Guaranteed Government Lenders (NAGGL). To keep our clients updated, please see the following:

The revised Standard Operating Procedures (SOPs) for the SBA 7a loan program include the following language (effective August 1, 2008):
SOP 50 10 (5), PG 179, (4), (i) (a-c)
  • For loans of $350,000 or less, the lender may do its own valuation of the business being sold.
  • For loans greater than $350,000 or if there is a close relationship between the buyer and seller, the lender must obtain an independent business valuation from a qualified source. A “qualified source” is an individual who regularly receives compensation for business valuations and is accredited by a recognized organization. Some recognized organizations and the accreditations they provide include:
    • 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
  • The lender may not use a business valuation provided by the seller or the buyer to meet these requirements.

GCF Valuation can be engaged to provide a valuation that will conform to USPAP and the SBA requirements. Please contact us for more information.