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.
Affiliated Group
When two or more...
Amortization
A non-cash operating expense that...
Normal Gross Margin
The margin that would have been...
Partnering
A mutually beneficial business-to-bus...
Applicant Individual
aka who is requesting an SBA loan...
Available Asset Test
Part of the CET that determines if an applicant(s) has...
Defense Acquisition Regulatory Council (DARC)
A group composed of rep...
Days Receivable
A measure of the average time a...
Liabilities
A financial obligation...
Trend Analysis
A comparative analysis of...
Phase 2
Process to be used to determine economic injury for...
Sole Proprietor
an individual who...
Loan Authorization and Agreement (LA&A)
A contract between SBA and the borrower that...
Affiliate
Business concerns are affiliates if one concern...
Prime Contract
A contract awarded directly...

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