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.
GPM%
The measure of every sales dollar left...
Assets
The amount of current assets that is left...
Defense Acquisition Regulatory Council (DARC)
A group composed of rep...
S-Corporation
A form of corporation, allowed by...
Contracting
Purchasing, renting, leasing, or...
Defense Contractor
Any person who enters into...
Applicant Entity
The business entity requesting...
Small Business
A business smaller than...
Companion File
When an applicant has another application filed...
Credit Score Test
Part of the home loan CET show a...
Acquisition
The acquiring of supplies or...
Sole Proprietor
an individual who...
Economic Injury Disaster Loan (EIDL)
a working capital loan that...
Joint Venture
In the SBA Mentor-Protégé Program...
Cash Flow Test
Part of the CET that determines if...

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