SBA Glossary
updated on
Sep 9, 2022

Search SBA Terms

SBA Glossary

Common SBA Terms

Full list of common terms used to discuss SBA Loans.
Accrual Basis Accounting
recognizes revenues when earned and expenses are...
Acquisition
The acquiring of supplies or...
Adjusted Net Worth
Post disaster fair market value of tangible...
Affiliate
Business concerns are affiliates if one concern...
Affiliated Group
When two or more...
Affiliates
Business concerns, organizations, or...
Amortization
A non-cash operating expense that...
Applicant Entity
The business entity requesting...
Applicant Individual
aka who is requesting an SBA loan...
Applicant/Co-Applicant
Business entity and person requesting...
Assets
The amount of current assets that is left...
Available Asset Test
Part of the CET that determines if an applicant(s) has...
B/E (Business EIDL) Loan
A business loan that...
Balance Sheet or Statement of Financial Position
Assets = Liabilities + Equity...
Best and Final Offer
For negotiated procurements...
Break-even Analysis
A calculation of the approximate sales...
Business Activity
The business (or loss) activity of...
Capital Leases
are for the purchase of fixed assets such as...
Cash Available to Service Additional Debt (CASAD)
The cash flow determined that...
Cash Flow Test
Part of the CET that determines if...
Cash-basis Accounting
records revenue when cash is...
Certificate of Competency
A certificate issued by the Small Bus...
Certified 8(a) Firm
A firm owned and operated by socially and...
Coastal Barrier Resource Area (COBRA)
A flood prone area in which...
Collateral
Assets pledged by a borrower to secure a loan...
Companion File
When an applicant has another application filed...
Comparative Analysis
Is designed to point out significant trends that...
Contract
A mutually binding legal rel..
Contracting
Purchasing, renting, leasing, or...
Contracting Officer
A person with the authority to...
Contractor Team Arrangement
An arrangement in which...
Corporation (C-corp.)
The most common form of business org...
Credit Elsewhere Test (CET)
The test to determine the...
Credit Score Test
Part of the home loan CET show a...
Current Assets
A balance sheet item which equals...
Current Liabilities
A balance sheet item, which...
DBA
ex. Blocker & Sons LLC, doing business as Bob's Burgers
Days Payable
A measure of the average time a...
Days Receivable
A measure of the average time a...
Defense Acquisition Regulatory Council (DARC)
A group composed of rep...
Defense Contractor
Any person who enters into...
Depreciation
A non-cash operating expense that...
Duplicated Interest
The amount of interest exp...
Economic Injury Disaster Loan (EIDL)
a working capital loan that...
Electronic Data Interchange
Transmission of information bet...
Emerging Small Business
A small business concern whose...
Equity
An accounting term used to...
Extraordinary Items
Additional expenses that are...
Fair and Reasonable Price
A price that is fair to both parties...
Federal Acquisition Regulation (FAR)
The body of regulations which is...
Full and Open Competition
With respect to a contract action...
GPM%
The measure of every sales dollar left...
Guarantor
The legal entity and...
Hardship Waiver
Method used to approve a...
Income Statement
Shows the entity’s income and...
Injury Analysis
Measures the effects of...
Injury Period
The time period during...
Intermediary Organization
Organizations that play a funda...
Joint Venture
In the SBA Mentor-Protégé Program...
Liabilities
A financial obligation...
Lien
A legal claim against an...
Limited Liability Entities (company/partnership)
An LLE provides business owners with...
Limited Partnership
A business organization with one or...
Loan Authorization and Agreement (LA&A)
A contract between SBA and the borrower that...
Mentor
A business, usually large, or...
NAICS
NAICS codes are common...
Negotiation
Contracting through the use of...
Normal Annual Sales
Those sales that would have...
Normal Gross Margin
The margin that would have been...
Operating Leases
are deducted on the company’s...
P&L (Profit and Loss Statement)
also considered as Income Statement or...
Partnering
A mutually beneficial business-to-bus...
Partnership
A type of unincorporated business org...
Phase 1
Process used to determine the...
Phase 2
Process to be used to determine economic injury for...
Physical Loans
Funds to repair/replace dis...
Primary Activity
The major business activity of...
Prime Contract
A contract awarded directly...
Principal
the owner(s) of the Applicant Entity that...
Projection
An estimate of future economic or...
Protégé
A firm in a developmental stage that...
Request for Proposal (RFP)
A document outlining a...
S-Corporation
A form of corporation, allowed by...
SAE (Stand Alone Economic Injury Disaster Loan)
provide necessary working capital to...
SCORE
Counselors to America's Small Bus...
Schedule of Liabilities
A business debt schedule that lists all of the debts...
Small Business
A business smaller than...
Small Business Development Centers (SBDC)
SBDCs offer a broad spec...
Small Business Innovative Research (SBIR) Contract
A type of contract designed to...
Small Disadvantaged Business Concern
A small business concern that...
Sole Proprietor
an individual who...
Standard Industrial Classification (SIC) Code
A code representing a category within...
Subcontract
A contract between a prime cont...
Subsidiary
A company for which a majority of the...
Substantial Damage
This means uninsured or otherwise uncompensated...
Trend Analysis
A comparative analysis of...
Working Capital (WC)
The amount of current assets that...

SBA 7a Loans

The 7(a) Loan Program, SBA’s most common loan program, includes assistance for each business with unique needs.
Learn more

SBA 504 Loans

The 504 Loan Program is very popular for long-term, fixed rate financing of up to $5 million for major fixed assets.
Learn more

SBA Microloans

The average Microloan is about $13,000. The Microloans program provides loans up to $50,000 to small businesses.
Learn more
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