SBA’s SOP Revisions Allow Real Estate Appraisers to Perform Going Concern Appraisals of Businesses

RESTON, Va. - May 6, 2015 - PRLog -- On May 4, the Small Business Administration (SBA) released an Information Notice updating its Standard Operating Procedures (SOPs). As part of the Notice, SBA has changed its requirements for going concern appraisals of businesses with special purpose property. The new requirements read as follows:

If an applicant business operates from a Special Purpose Property (for example, car washes, hotels, gas stations with or without a convenience store, golf courses, medical facilities or bowling alleys), the going concern appraisal must be completed by a Certified General Real Property Appraiser with experience appraising the specific business/property type. Such appraisals must allocate separate values to the individual components of the transaction including land, building, equipment and intangible assets. Finally, the Certified General Appraiser must have completed no less than four going concern appraisals of equivalent special use property as the property being appraised, within the last 36 months, as identified in the qualifications portion of the Appraisal Report.

ASA was instrumental in SBA’s adoption of these changes to the SOP to ensure that RP appraisers who are properly qualified can provide going concern valuation services in connection with SBA’s 7(a) Loan Guaranty Program. ASA wishes to thank the SBA and its staff for their hard work in effecting this important change.

Further, ASA is pleased to announce that its RP401 - Allocating Components in Going Concern Appraisals (http://www.appraisers.org/Education/View-Course?CourseID=413) course has received CAP approval through the Appraisal Qualifications Board of the Appraisal Foundation. This, in addition to state-level continuing education approval in 29 states, makes it a cornerstone course for anyone wishing to add SBA work to their repertoire. ASA plans to announce its upcoming slate of offerings shortly.

To read the SBA Information Notice, click here (http://www.appraisers.org/docs/default-source/advocacy/sb...). For more information on the RP401 course, please visit www.appraisers.org or call 1-800-ASA-VALU.

American Society of Appraisers

The American Society of Appraisers is a world renowned and respected international organization devoted to the appraisal profession. As the oldest and only major appraisal organization representing all appraisal specialists, ASA is devoted to providing the highest possible standards in all areas of ethics, professionalism, education and designation criteria. For more information about the American Society of Appraisers, the ASA designation program for appraisers or the Society’s free “Find an Appraiser (http://www.appraisers.org/find-an-appraiser)” Referral System, visit www.appraisers.org or call (800) 272-8258.