On April 3 the American Society of Appraisers (ASA), together with the Royal Institute of Chartered Surveyors (RICS Americas), sent a letter to the Small Business Administration (SBA) strongly urged the immediately suspension of an October 2011 requirement that real estate appraisers who wish to perform going concern valuations of the tangible and intangible assets of firms whose loans are guaranteed by SBA, must complete a course offered by the Appraisal Institute. That course has come under severe criticisms from many quarters, including from senior members of the Appraisal Institute itself. The ASA/RICS Americas letter also criticizes other weaknesses in the SBA’s valuation requirements and makes specific recommendations on how the agency can strengthen its appraisal requirements to better ensure the reliability of appraisals in connection with SBA guaranteed loans.
Read the full letter here. ASA and RICS Americas Ask SBA to Revise SOPs Regarding Going Concern Valuations