Small Business Administration (SBA) appraisals are valuations performed to determine the market value of real estate or business assets used as collateral for SBA-backed loans. The SBA requires an independent, certified appraiser to complete the report when real property is involved in a loan of $500,000 or more (or when required by the lender for risk or credit purposes). These appraisals must comply with the Uniform Standards of Professional Appraisal Practice (USPAP) and adhere to SBA’s Standard Operating Procedures (SOP 50 10). The goal is to ensure that the valuation accurately reflects market conditions and supports prudent lending decisions. Appraisers must be state-certified and independent from the transaction. SBA appraisals play a critical role in protecting both borrowers and lenders by confirming that collateral values are reliable, reasonable, and in line with regulatory expectations.