Ask The Experts
SBA 504 Q&A: Equipment Appraisal
Q: Are appraisals required on equipment financed under the Small Business Administration (SBA) 504 Loan Program?
A: Per the SOP, the SBA requires that an equipment appraisal be obtained when used equipment is part of the 504 loan project and is either being purchased from someone other than an equipment dealer, or being refinanced.
The equipment appraisal needs to be a written document from a person that is qualified to provide a valuation, is independent of the transaction and has performed an on-site inspection of the equipment. The appraisal must be dated no more than 12 months prior to the date of the application.
If you have a question you’d like our SBA 504 loan experts to answer, email us at info@FloridaFirst.com or call 850.681.3601 or toll-free at 800.504.LOAN.