📚 Valuation Myth: SBA Approval Means the Valuation is Right

~ Certified Business Appraiser

The Myth:
If the SBA accepted the valuation, it must be accurate.

The Reality:
SBA loan approval primarily ensures that minimum standards are met — not that the valuation is free from errors or aggressive assumptions. Compliance doesn’t always equal credibility.

Why It Matters:
Lenders and buyers who rely blindly on “approved” valuations can expose themselves to hidden risks.

Practical Tip:
Always critically review any valuation you rely on — even if it was “approved” — for methodology, support, and reasonableness.