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.
Credit Elsewhere Test (CET)
The test to determine the...
Equity
An accounting term used to...
Limited Liability Entities (company/partnership)
An LLE provides business owners with...
Fair and Reasonable Price
A price that is fair to both parties...
Income Statement
Shows the entity’s income and...
Comparative Analysis
Is designed to point out significant trends that...
Small Disadvantaged Business Concern
A small business concern that...
Applicant Individual
aka who is requesting an SBA loan...
Substantial Damage
This means uninsured or otherwise uncompensated...
Liabilities
A financial obligation...
Extraordinary Items
Additional expenses that are...
Days Payable
A measure of the average time a...
Balance Sheet or Statement of Financial Position
Assets = Liabilities + Equity...
Best and Final Offer
For negotiated procurements...
Small Business Innovative Research (SBIR) Contract
A type of contract designed to...

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