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Chicago Business Valuation Appraisals
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Full-Service Certified Business Valuation Firm
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SBA Requires a Certified Business Appraisal
When is an independent business valuation required?
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If the amount being financed (including any 7(a), 504, seller, or other financing) minus the appraised value of real estate and/or equipment being financed is $250,000 or less, the lender may perform its own valuation of the business being sold, unless the lender’s internal policies and procedures require an independent business valuation from a qualified source.
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If the amount being financed (including any 7(a), 504, seller, or other financing) minus the appraised value of real estate and/or equipment is greater than $250,000 or if there is a close relationship between the buyer and seller (for example, transactions between family members or business partners), the lender must obtain an independent business valuation from a qualified source.
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What is a qualified source?
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A “qualified source” is an individual who regularly receives compensation for business valuations and is accredited by one of the following recognized organizations:
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Accredited Senior Appraiser (ASA) accredited through the American Society of Appraisers
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Certified Business Appraiser (CBA) accredited through the Institute of Business Appraisers
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Accredited in Business Valuation (ABV) accredited through the American Institute of Certified Public Accountants
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Certified Valuation Analyst (CVA) accredited through the National Association of Certified Valuation Analysts
A new change to the SOP in 2014 is that a CPA without one of the credentials listed above is not considered a qualified source.