Enter content here

C-Store Valuations

New! 2015 SBA Appraisal Rules

Enter subhead content here

Enter content here


New! 2019


SBA Releases Updated Appraisal Policy, Imposes Evaluation Requirements

The Small Business Administration on March 29 issued revised guidance for SBA 7(a) and 504 loans following the passage of legislation that ties the SBA appraisal threshold to the threshold for commercial real estate as established by the federal bank regulatory agencies. 


The SBA threshold had long been set by statute at $250,000, but new guidance states that an appraisal may still be needed to evaluate the creditworthiness of commercial real estate loans below $500,000. 


The guidance makes it clear to lenders that if they do not get an appraisal, they must obtain an evaluation consistent with the Interagency Appraisal and Evaluation Guidelines for commercial loans below the half-million-dollar threshold 







2015 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. 


Summary of Changes

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 (512) 986-3312.


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.

Please Click Here to Download the 2015 SBA Appraisal Announcement