Changes to SBA Lending Requirements
Effective May 1, 2015, the Small Business Administration
(SBA) is updating the business appraisal requirements for change of ownership transactions involving a Special Purpose Property.
The Going Concern Value must be appraised by a Certified General Real Property appraiser with experience
in that particular property type (4 appraisal reports within the last 36 months).
It is no longer required that the business appraisal component
of the going concern appraisal be completed by a designated business appraiser. The SBA is looking for competence and
experience with the particular property type.
Updated Business Appraisal Requirements for 7(a) Loans
“If an applicant
business operates from a Special Purpose Property (for example, car washes, hotels, gas stations with or without a convenience
store, golf courses, medical facilities or bowling alleys), the going concern appraisal must be completed by a Certified
General Real Property Appraiser with experience appraising the specific business/property type. Such appraisals must
allocate separate values to the individual components of the transaction including land, building, equipment and intangible
assets. Finally, the Certified General Appraiser must have completed no less than four going concern appraisals of equivalent
special use property as the property being appraised, within the last 36 months, as identified in the qualifications portion
of the Appraisal Report.”
Robert E. Bainbridge MAI is one of the nation’s foremost experts in the valuation of convenience stores and
gas stations. He wrote the standard textbook and developed the Appraisal Institute’s educational curriculum on
the appraisal of convenience stores and gas stations. With over 30 years of experience, we specialize exclusively in
convenience stores and gas stations and our reports always allocate the going concern value as required by the SBA.
Our reports meet the new SBA lending requirements.
Give us a call on your next convenience store/gas station appraisal
Download a complete copy of the 2015 SBA SOP Announcement at the
link below. See Item (5) "Updated Business Appraisal Requirements for 7(a) Loans" on Page 3.