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.
Amortization
A non-cash operating expense that...
Projection
An estimate of future economic or...
Depreciation
A non-cash operating expense that...
Contract
A mutually binding legal rel..
Cash-basis Accounting
records revenue when cash is...
Primary Activity
The major business activity of...
Applicant Individual
aka who is requesting an SBA loan...
Full and Open Competition
With respect to a contract action...
Available Asset Test
Part of the CET that determines if an applicant(s) has...
Operating Leases
are deducted on the company’s...
Best and Final Offer
For negotiated procurements...
Applicant Entity
The business entity requesting...
Adjusted Net Worth
Post disaster fair market value of tangible...
Small Business Innovative Research (SBIR) Contract
A type of contract designed to...
Schedule of Liabilities
A business debt schedule that lists all of the debts...

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