Equipment Appraisal for SBA

If you are applying for an SBA 7(a) loan to purchase or refinance a restaurant, you may be required to provide an appraisal of the restaurant equipment as part of the loan application process.

The SBA 7(a) loan program is a government-backed loan program that provides financing to small businesses for a variety of purposes, including the purchase or refinance of commercial real estate, equipment, or inventory. To qualify for an SBA 7(a) loan, the lender will typically require a valuation of the assets being used as collateral for the loan, including restaurant equipment.

An appraisal of the restaurant equipment can provide a lender with an accurate estimate of the value of the equipment, which can help the lender determine the amount of the loan for which you may be eligible. The appraisal can also help the lender assess the potential risk associated with the loan, and ensure that the loan amount is appropriate based on the value of the collateral.

The appraisal process typically involves an assessment of the condition, age, and functionality of the restaurant equipment, as well as a review of comparable sales and market data to determine the fair market value of the equipment. The appraisal report can then be used to support your loan application and help you obtain financing for your restaurant business.