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.
Capital Leases
are for the purchase of fixed assets such as...
SCORE
Counselors to America's Small Bus...
Applicant Entity
The business entity requesting...
Protégé
A firm in a developmental stage that...
Contractor Team Arrangement
An arrangement in which...
P&L (Profit and Loss Statement)
also considered as Income Statement or...
Cash Flow Test
Part of the CET that determines if...
Small Business Innovative Research (SBIR) Contract
A type of contract designed to...
Working Capital (WC)
The amount of current assets that...
Operating Leases
are deducted on the company’s...
Small Business Development Centers (SBDC)
SBDCs offer a broad spec...
Injury Analysis
Measures the effects of...
Injury Period
The time period during...
Cash Available to Service Additional Debt (CASAD)
The cash flow determined that...
Partnership
A type of unincorporated business org...

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