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APPRAISAL GUIDELINES |
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SBA now requires the appraisal to be addressed to both the Third Party Lender
AND to the CDC or SBA.
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When issuing your appraisal engagement letter, please include NWBDA and SBA as an authorized user of the report. If your appraiser will not allow this, a separate appraisal will need to be ordered by NWBDA and charged to the borrower.
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When financing ground-up construction or substantial improvements (1/3 of the FMV), SBA requires the appraiser to estimate the market value on an as-is basis and at the completion of construction. The appraiser will also need to issue a certification that completed construction was "generally" completed according to plans and specifications.
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When the collateral is an existing building that does not require improvements, the appraiser should estimate market value on an as-is basis.
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The appraiser must also allocate separate values to the individual components including land, building, equipment and intangibles (blue sky).
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Effective Rates February 2010
20 Year Rate: 5.55%
10 Year Rate: 4.91% |
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