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.
Available Asset Test
Part of the CET that determines if an applicant(s) has...
Break-even Analysis
A calculation of the approximate sales...
Cash Flow Test
Part of the CET that determines if...
Small Business Development Centers (SBDC)
SBDCs offer a broad spec...
Federal Acquisition Regulation (FAR)
The body of regulations which is...
Certificate of Competency
A certificate issued by the Small Bus...
S-Corporation
A form of corporation, allowed by...
Loan Authorization and Agreement (LA&A)
A contract between SBA and the borrower that...
Income Statement
Shows the entity’s income and...
Credit Elsewhere Test (CET)
The test to determine the...
Equity
An accounting term used to...
Limited Partnership
A business organization with one or...
Current Liabilities
A balance sheet item, which...
Liabilities
A financial obligation...
Primary Activity
The major business activity of...

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