Not all valuations are created equal.
There’s a critical difference between fair market value and strategic value—especially in SBA 7(a) lending.

✅ Fair Market Value assumes a hypothetical buyer with no special motivations.
🤝 Strategic Value reflects what a specific buyer might be willing to pay for their own reasons (synergies, territory, IP, etc.).

💡 If you’re underwriting a loan based on strategic value, you’re not lending against the business—you’re betting on the buyer.

Make sure your underwriting and valuation reflect the right standard.