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.
Intermediary Organization
Organizations that play a funda...
Credit Elsewhere Test (CET)
The test to determine the...
Cash-basis Accounting
records revenue when cash is...
Current Assets
A balance sheet item which equals...
Loan Authorization and Agreement (LA&A)
A contract between SBA and the borrower that...
Contracting
Purchasing, renting, leasing, or...
Cash Flow Test
Part of the CET that determines if...
Physical Loans
Funds to repair/replace dis...
Best and Final Offer
For negotiated procurements...
Credit Score Test
Part of the home loan CET show a...
Joint Venture
In the SBA Mentor-Protégé Program...
Accrual Basis Accounting
recognizes revenues when earned and expenses are...
Companion File
When an applicant has another application filed...
Small Business Development Centers (SBDC)
SBDCs offer a broad spec...
Comparative Analysis
Is designed to point out significant trends that...

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