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.
Federal Acquisition Regulation (FAR)
The body of regulations which is...
Cash Flow Test
Part of the CET that determines if...
Break-even Analysis
A calculation of the approximate sales...
Corporation (C-corp.)
The most common form of business org...
Coastal Barrier Resource Area (COBRA)
A flood prone area in which...
Contracting
Purchasing, renting, leasing, or...
Acquisition
The acquiring of supplies or...
Liabilities
A financial obligation...
Projection
An estimate of future economic or...
Extraordinary Items
Additional expenses that are...
Business Activity
The business (or loss) activity of...
Operating Leases
are deducted on the company’s...
Income Statement
Shows the entity’s income and...
Joint Venture
In the SBA Mentor-Protégé Program...
Cash-basis Accounting
records revenue when cash is...

Get the quick rundown on SBA Loans

Join over 4,000+ small business owners already growing with us.