If you are obtaining an SBA 7(a) or SBA 504 loan to purchase, expand, refinance, or construct a restaurant, your lender may require a professional restaurant equipment appraisal as part of the underwriting process. Commercial kitchen equipment often represents a substantial investment, and an independent appraisal provides lenders with a credible opinion of the value of the assets being financed or pledged as collateral.

Truman Mox specializes in USPAP-compliant restaurant equipment appraisals for SBA lenders and borrowers nationwide. Our reports help banks, credit unions, Certified Development Companies (CDCs), and commercial lenders document collateral values, support credit decisions, and satisfy appraisal requirements associated with SBA financing.

The SBA 7(a) loan program is the Small Business Administration's most widely used financing program and is commonly utilized for restaurant acquisitions, working capital, debt refinancing, equipment purchases, leasehold improvements, and business expansions.

In many SBA 7(a) transactions, restaurant equipment serves as a significant component of the lender's collateral package. As a result, lenders frequently require an independent restaurant equipment appraisal to establish the Fair Market Value of the commercial kitchen equipment securing the loan.

A professional appraisal helps lenders:

• Verify collateral values.
• Support loan underwriting.
• Evaluate loan-to-value ratios.
• Document collateral within the credit file.
• Reduce lending risk through an independent opinion of value.

Restaurant equipment appraisals are also commonly required for SBA 504 loans. Unlike SBA 7(a) financing, where machinery and equipment often represent a primary source of collateral, SBA 504 loans are generally secured by owner-occupied commercial real estate.

However, as an added measure of protection, many lenders also obtain a blanket lien on the borrower's machinery and equipment. Although the real estate typically provides the primary collateral support, lenders frequently require a restaurant equipment appraisal to document the value of the additional collateral included in the transaction.

This provides the lender with a complete understanding of the collateral package while satisfying internal credit policies and underwriting requirements.

Truman Mox has completed restaurant equipment appraisals for hundreds of banks, credit unions, commercial finance companies, and SBA lenders throughout the United States.

Our appraisers have extensive experience supporting both SBA 7(a) and SBA 504 lending programs by providing independent, USPAP-compliant valuation reports for:

• Restaurant acquisitions
• Business expansions
• Equipment financing
• Commercial refinancing
• Collateral reviews
• Loan renewals
• Portfolio monitoring

In addition, Truman Mox has completed numerous restaurant equipment appraisals supporting SBA Economic Injury Disaster Loan (EIDL) collateral releases. We understand the documentation lenders require and prepare appraisal reports that integrate seamlessly into the SBA lending process.

Our restaurant equipment appraisals commonly include:

• Commercial ovens and ranges
• Fryers and grills
• Walk-in coolers and freezers
• Refrigeration systems
• Food preparation equipment
• Dishwashing equipment
• Bar equipment
• Ice machines
• Dining room furniture
• Point-of-sale (POS) systems
• Shelving and storage systems
• Smallwares
• Specialty commercial kitchen equipment

Every assignment is customized to the collateral list provided by the lender or borrower.

Depending on the lender's requirements, our appraisal reports may include one or more value conclusions.

Fair Market Value (FMV) represents the estimated price the restaurant equipment would sell for between a willing buyer and willing seller, with neither party under compulsion and both possessing reasonable knowledge of the relevant facts.

Orderly Liquidation Value (OLV) estimates the anticipated proceeds if the equipment is sold over a limited but commercially reasonable marketing period.

Forced Liquidation Value (FLV) estimates the value under distressed conditions where the equipment must be sold within a significantly compressed timeframe, such as at auction.

These value conclusions help lenders understand both the ongoing collateral value and the potential recovery value should liquidation become necessary.

Truman Mox is an independent machinery and equipment appraisal firm specializing in commercial restaurant equipment valuations. We do not buy, sell, broker, or auction restaurant equipment, ensuring every appraisal remains objective and free from conflicts of interest.

Our appraisal reports are prepared in accordance with the Uniform Standards of Professional Appraisal Practice (USPAP) and are accepted by:

• Commercial banks
• Credit unions
• SBA lenders
• Certified Development Companies (CDCs)
• Attorneys
• CPAs
• Business owners
• Restaurant buyers and sellers

With nationwide coverage and extensive experience appraising restaurant equipment, we understand the collateral requirements associated with SBA lending and provide timely, well-supported reports that lenders can rely upon.

Whether you are applying for an SBA 7(a) loan, an SBA 504 loan, refinancing an existing restaurant, purchasing a restaurant business, or expanding your current operation, Truman Mox can provide the independent restaurant equipment appraisal your lender requires.

Contact Truman Mox today at (888) 494-3433 or request a quote online to discuss your SBA restaurant equipment appraisal. Our experienced appraisers serve lenders and borrowers throughout the United States.