SBA 504 Appraisal Requirements

When Needed:

  • SBA Requires a real estate appraisal if the estimated value of the property is greater than $500,000

Intended Users of the Appraisal: 

  • You, the lender, may be identified as the client and U.S. Small Business Administration (SBA) must be an intended user. 

  • Capital Matrix may also be identified as the client or an intended user.

  • SBA will not accept reliance letters in lieu of being named in the appraisal. 

The appraiser must be: 

  • Independent 

  • State-licensed or State-certified. When the property's estimated value is over $1,000,000 the appraiser must be State-Certified.


  • Prepared in compliance with the Uniform Standards of Professional Appraisal Practice (USPAP) 

  • Dated no more than 12 months prior to the SBA application

  • Must utilize at least two of the three approaches to value

  • Must value to 95% of total project cost, otherwise additional equity injection is required

  • No restricted appraisals, must be a self-contained or summary report 

  • Intangible assets will not be included in value

  • If equity in land is being contributed, appraisal is required if owned for 2 years or more, otherwise cost is used 

  • Required if not an arms-length transaction