⚙️ When You Do (and Don’t) Need an M&E Appraisal for SBA Loans

~ Certified Business Appraiser

Does SBA require a machinery & equipment appraisal? Short answer: NO.

Under SOP 50 10 8, SBA does not mandate an M&E appraisal in most cases. It’s typically up to the lender.

In some cases, lenders may request a separate M&E appraisal if:

  • The equipment is used and collateral value needs to be documented
  • The assets make up a substantial portion of loan security
  • There’s a related-party transaction that needs extra support

Key takeaway:
While not required by the SOP, an M&E appraisal can strengthen underwriting—by documenting recoverable collateral value and helping support the loan structure.  An M&E appraisal isn’t just about putting a number on a forklift. It’s about documenting recoverable value and protecting the lender, buyer, and SBA guaranty.

Check out our article and video on this topic!