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.
Small Business Development Centers (SBDC)
SBDCs offer a broad spec...
Hardship Waiver
Method used to approve a...
Operating Leases
are deducted on the company’s...
Corporation (C-corp.)
The most common form of business org...
Primary Activity
The major business activity of...
Depreciation
A non-cash operating expense that...
Affiliate
Business concerns are affiliates if one concern...
Small Disadvantaged Business Concern
A small business concern that...
Current Assets
A balance sheet item which equals...
Loan Authorization and Agreement (LA&A)
A contract between SBA and the borrower that...
Current Liabilities
A balance sheet item, which...
Partnering
A mutually beneficial business-to-bus...
Certified 8(a) Firm
A firm owned and operated by socially and...
Full and Open Competition
With respect to a contract action...
Fair and Reasonable Price
A price that is fair to both parties...

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