Use this checklist to assess businesses in this industry for SBA 7(a) lending and underwriting. 🧑🔧 Owner Dependency & Technical Skill Risk Is the owner the lead machinist, programmer, or estimator? Has a market wage been applied for the owner’s technical role? Is there trained staff or documentation to transfer technical knowledge? Are SOPs, G-code … Continue reading Machine Shop / Tool & Die Checklist
buying a business
✅ Is Your Valuation Model Tax-Affected? It Should Be.
💬 Pass-through entities don’t pay taxes at the corporate level—but does that mean we should value them as if taxes don’t exist? Nope. Here’s why ignoring tax-affecting can seriously overstate value. 👉 Download the white paper on Tax Affecting Pass-Through Income
✅ Risk and Return — What SBA Lenders Must Understand
💬 Higher returns only come with higher risk. But are your valuations quantifying that risk properly? Here's how risk impacts cap rates and value — explained clearly for lenders. 👉 Download the white paper discussing Risk and Return as it applies to SBA 7a business valuations.
Top 10 Misunderstandings SBA 7(a) Lenders Have About Business Valuations
Business valuations play a pivotal role in underwriting SBA 7(a) loans, especially for business acquisitions. However, many lenders misunderstand key principles underlying valuation methodology, potentially leading to flawed underwriting, non-compliance with SBA SOP requirements, or exposure to guaranty denial risk. This white paper outlines the ten most common misunderstandings SBA lenders have about business valuations … Continue reading Top 10 Misunderstandings SBA 7(a) Lenders Have About Business Valuations
How to Prepare for a SBA 7a Business Valuation
An SBA loan appraisal can make or break a deal. Proper preparation ensures a smooth process, aligns expectations between lender and borrower, and mitigates the risk of loan denial. This paper outlines what business owners and advisors need to know before the valuation begins. 1. Understand the Appraisal Requirements SBA SOP 50 10 8 requires … Continue reading How to Prepare for a SBA 7a Business Valuation
The State of Small Business in America: A Strategic Guide for SBA Lenders, Owners, Brokers, and Appraisers
Part 1: Introduction and Overview Historical Perspective on Small Business in the U.S. Small businesses have been an integral part of America’s economic identity since the country’s founding. From colonial-era blacksmith shops to the modern digital startups of Silicon Valley, entrepreneurship has always played a pivotal role in driving growth, innovation, and social mobility. In … Continue reading The State of Small Business in America: A Strategic Guide for SBA Lenders, Owners, Brokers, and Appraisers
Understanding Business Valuations for SBA 7(a) Lending
Business valuations are critical for Small Business Administration (SBA) 7(a) lending, ensuring loans for business acquisitions are based on objective fair market value (FMV). SBA SOP mandates third-party valuations by qualified sources for change-of-ownership loans exceeding $250,000. This white paper explores the three primary valuation approaches (income, market, asset-based), the role of free cash flow, … Continue reading Understanding Business Valuations for SBA 7(a) Lending
✅ Machinery & Equipment Appraisals in SBA Lending — When Are They Required?
💬 If your loan package includes significant hard assets, a business valuation alone may not cut it. Here’s when lenders generally engage an M&E appraisal. 👉 Read our white paper on Machinery & Equipment Valuation for SBA Loans
✅ How to Treat Rent When Business and Real Estate Are Acquired Together
💬 When a buyer is acquiring both the business and the building, what rent should be used in the valuation? The answer matters. A lot. 👉 Check out our white paper on Normalizing Rent for SBA Transactions
Understanding Machinery & Equipment Appraisals: A Companion Discipline to Business Valuation
Machinery and Equipment (M&E) appraisals serve as a critical component in a wide range of financial, legal, and strategic contexts. From SBA 7(a) lending and asset-based loans to litigation support and estate planning, M&E valuations provide an objective analysis of the value of tangible business assets. This white paper outlines the principles, methods, value types, … Continue reading Understanding Machinery & Equipment Appraisals: A Companion Discipline to Business Valuation
Highland Global Business Valuations 