Glossary
SBA Terms

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
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SBA Glossary

Common SBA Terms

Everything you need to know about common terms used to discuss SBA Loans.
Days Receivable
A measure of the average time a...
Request for Proposal (RFP)
A document outlining a...
Principal
the owner(s) of the Applicant Entity that...
Limited Liability Entities (company/partnership)
An LLE provides business owners with...
Normal Gross Margin
The margin that would have been...
Accrual Basis Accounting
recognizes revenues when earned and expenses are...
Available Asset Test
Part of the CET that determines if an applicant(s) has...
GPM%
The measure of every sales dollar left...
Federal Acquisition Regulation (FAR)
The body of regulations which is...
Applicant Entity
The business entity requesting...
Affiliated Group
When two or more...
Companion File
When an applicant has another application filed...
Days Payable
A measure of the average time a...
Guarantor
The legal entity and...
Small Disadvantaged Business Concern
A small business concern that...

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