❗WACC is not the same as the cost of equity.
And for SBA 7(a) lenders, understanding the difference can protect your deal.

When a business has debt in the capital structure, you need to value it using the weighted average cost of capital (WACC)—not just equity rates.

WACC reflects risk and capital structure.
Cost of equity? Only what shareholders expect.

When lenders or appraisers confuse the two, they might misprice the risk—or worse, overvalue the business.