Capital Leases

are for the purchase of fixed assets (machinery/equipment) and these assets are shown on the company’s balance sheet and represent a fixed debt. If the lease is a capital lease, the debt should be shown as a Note Payable.

Updated on
September 9, 2022
Published on
June 20, 2018
The 7(a) Loan Program, SBA’s most common loan program, includes assistance for each business with unique needs.
SBA 504 loans are very popular for long-term, fixed rate financing of up to $5 million for major fixed assets.
The average Microloan is about $13,000. The Microloans program provides loans up to $50,000 to small businesses.
SBA Glossary

Common SBA Terms

Everything you need to know about common terms used to discuss SBA Loans.
Balance Sheet or Statement of Financial Position
Assets = Liabilities + Equity...
Affiliated Group
When two or more...
Small Disadvantaged Business Concern
A small business concern that...
Assets
The amount of current assets that is left...
GPM%
The measure of every sales dollar left...
Intermediary Organization
Organizations that play a funda...
Cash-basis Accounting
records revenue when cash is...
NAICS
NAICS codes are common...
Sole Proprietor
an individual who...
Applicant Entity
The business entity requesting...
Full and Open Competition
With respect to a contract action...
Cash Flow Test
Part of the CET that determines if...
Current Assets
A balance sheet item which equals...
Contracting
Purchasing, renting, leasing, or...
Capital Leases
are for the purchase of fixed assets such as...

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