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.
Trend Analysis
A comparative analysis of...
Intermediary Organization
Organizations that play a funda...
Companion File
When an applicant has another application filed...
Hardship Waiver
Method used to approve a...
Joint Venture
In the SBA Mentor-Protégé Program...
Small Business
A business smaller than...
Assets
The amount of current assets that is left...
Amortization
A non-cash operating expense that...
GPM%
The measure of every sales dollar left...
Electronic Data Interchange
Transmission of information bet...
Current Liabilities
A balance sheet item, which...
Balance Sheet or Statement of Financial Position
Assets = Liabilities + Equity...
Lien
A legal claim against an...
Working Capital (WC)
The amount of current assets that...
Credit Elsewhere Test (CET)
The test to determine the...

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