📉 Projections are a tool—generally not a justification for 7a valuations.

The SBA favors valuation based on historical performance, not hypothetical growth.

But we’ve seen appraisals that:

• Use unsupported forecasts to support value
• Apply multiples to “future EBITDA”
• Ignore risk adjustments

📌 If the value is based on what the business might do or what the buyer hopes to to—it’s not FMV. It’s a bet.