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.
Accrual Basis Accounting
recognizes revenues when earned and expenses are...
Intermediary Organization
Organizations that play a funda...
Assets
The amount of current assets that is left...
Break-even Analysis
A calculation of the approximate sales...
Corporation (C-corp.)
The most common form of business org...
Prime Contract
A contract awarded directly...
Affiliates
Business concerns, organizations, or...
B/E (Business EIDL) Loan
A business loan that...
Injury Period
The time period during...
Available Asset Test
Part of the CET that determines if an applicant(s) has...
Coastal Barrier Resource Area (COBRA)
A flood prone area in which...
Contracting
Purchasing, renting, leasing, or...
Sole Proprietor
an individual who...
Full and Open Competition
With respect to a contract action...
Normal Gross Margin
The margin that would have been...

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