How to Keep SBA Business Valuations from Slowing Down Your Deal

A Practical Guide for SBA Loan Processors

Published: April 1, 2026

As somebody who has done thousands of business valuations for the last 10 plus years, we have seen everything. One thing that is clear is that there are many participants inside the bank that will touch a business valuation, but it is needed in different ways. From lenders to processors, to underwriters, to closers, everybody will at some point need to get their hands on the report. But each will have different uses for it.

Each bank is a little different in terms of how an SBA loan moves through the bank’s approval process. For the majority of our banks that we work with, the individual making this initial outreach is a processor.

The processor is the person responsible for gathering, organizing, and packaging all of the information needed to move a loan from application to approval and closing. Processors get frustrated when faced with long lead times, being told they did not send enough information, and other back and forth correspondence that slows the process down.

With respect to the business valuation, the processor is less concerned with the content of the report and more so receiving it back from the valuation firm in compliance with the SBA SOP and, just as importantly, in a timely manner. Simply put, the processor is not analyzing the loan or a valuation, only trying to move the process along.

This article is to help all interested parties make the process of ordering a business valuation as pain free as possible. That the proper documentation is sent to the valuation firm at the front end so it can be received back in a timely manner.
 


To put this into context, consider a valuation with a year-end valuation date of December 31, 2025. At a minimum, we need a complete financial picture tied to that date. That typically includes three years of historical tax returns through 2025. If the 2025 return is not yet filed, year-end internal financial statements as of December 31, 2025, will generally suffice. If the valuation date falls mid-year, then current year-to-date financial statements are needed to bridge that gap. A purchase agreement, or at least a clear framework of the deal, is also important so we understand what is actually being valued.

Beyond that, there are several items that are not always required to begin work but can significantly improve both the quality of the report and the speed at which it is completed. Providing context early reduces follow-up questions later in the process.

In practice, many of these “helpful” items become necessary once the analysis is underway. When they are not provided up front, it often results in additional questions and delays while that information is tracked down.

Taking a little extra time on the front end to gather a more complete picture can actually speed things up overall. Waiting a few days to assemble the right information is almost always faster than starting immediately and going back and forth multiple times as questions arise.
 

COMMON PROBLEMS THAT CAUSE DELAYS
Missing Financials – this is obvious enough but make sure you have all of the years needed with income statements and balance sheets if applicable.

Unclear Owner Involvement – Whether the owner is actively involved in the business or not, and what they are paid, is a key input in the valuation. When this is unclear, it often results in follow-up questions that could have been avoided with a brief explanation up front.

Stale Financials – Even when financials are clean and internally consistent, age can become an issue. Once financials begin to get several months old—particularly approaching six months—lenders and SBA reviewers may request updated information or confirmation that the original conclusion still holds. This can create delays if not addressed early.

Real Estate Not Finalized – If the deal includes real estate, it is generally best to wait until the real estate appraisal is complete before ordering the business valuation. Starting too early often creates more delay than it avoids.

Incomplete Tax Return Detail – Even when tax returns are provided, key supporting schedules are sometimes missing or cut off. This is especially true with depreciation schedules, which are often omitted but can be critical.

A complete depreciation schedule allows us to separate out the net book value of fixed assets, particularly in situations where categories like leasehold improvements or real estate are grouped together. Without that detail, it can be difficult to determine what is actually being conveyed in the transaction.

When these details are not included, it often results in follow-up questions and delays.

Aggressive Addbacks – there is often confusion around what qualifies as an addback. What may appear reasonable from a borrower’s perspective does not always meet the standards required for adjustment in a valuation.

Deal Structure Changes – it is rare but not uncommon for a deal to switch at the last minute from a stock sale to an asset sale or vice versa. This will require revisions and can delay the process.

Late Changes to Financials – obvious enough but sometimes we will receive last minute or revised financials. Late changes almost always result in rework.
 

At the end of the day, most delays in the valuation process are preventable. It is rarely the analysis itself that slows things down but rather gaps in the information or changes that occur after the process has already started.

Processors are in the best position to keep things moving. A clear and consistent set of financials, a basic understanding of the deal structure, and a little context around the numbers can eliminate multiple rounds of back and forth.

It does not require perfect information, but it does require clarity. Taking a little extra time on the front end to make sure the story makes sense will almost always result in a faster turnaround and fewer issues later in the process.

In most cases, a clean and complete file on the front end will result in a smoother process for everyone involved.

If you would prefer a printable version, you can download the PDF here: [Download PDF]

Lance LeBlanc, C.V.A., is the President of Green Country Business Valuations, a firm specializing in SBA business valuations for lenders across the country. He has completed thousands of valuations and works closely with processors, underwriters, and lenders to support them through the underwriting process.