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.
Subsidiary
A company for which a majority of the...
Days Receivable
A measure of the average time a...
Electronic Data Interchange
Transmission of information bet...
Working Capital (WC)
The amount of current assets that...
Contracting
Purchasing, renting, leasing, or...
Defense Contractor
Any person who enters into...
Current Assets
A balance sheet item which equals...
Phase 1
Process used to determine the...
Partnership
A type of unincorporated business org...
Protégé
A firm in a developmental stage that...
Injury Period
The time period during...
Loan Authorization and Agreement (LA&A)
A contract between SBA and the borrower that...
Sole Proprietor
an individual who...
Intermediary Organization
Organizations that play a funda...
Partnering
A mutually beneficial business-to-bus...

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