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 Innovative Research (SBIR) Contract
A type of contract designed to...
Contractor Team Arrangement
An arrangement in which...
Guarantor
The legal entity and...
Standard Industrial Classification (SIC) Code
A code representing a category within...
Income Statement
Shows the entity’s income and...
Days Payable
A measure of the average time a...
Available Asset Test
Part of the CET that determines if an applicant(s) has...
Phase 2
Process to be used to determine economic injury for...
Prime Contract
A contract awarded directly...
Partnership
A type of unincorporated business org...
Cash Flow Test
Part of the CET that determines if...
Contracting
Purchasing, renting, leasing, or...
Schedule of Liabilities
A business debt schedule that lists all of the debts...
Limited Liability Entities (company/partnership)
An LLE provides business owners with...
Principal
the owner(s) of the Applicant Entity that...

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