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.
Cash Flow Test
Part of the CET that determines if...
Coastal Barrier Resource Area (COBRA)
A flood prone area in which...
Lien
A legal claim against an...
Limited Liability Entities (company/partnership)
An LLE provides business owners with...
Collateral
Assets pledged by a borrower to secure a loan...
Small Business Development Centers (SBDC)
SBDCs offer a broad spec...
Substantial Damage
This means uninsured or otherwise uncompensated...
Economic Injury Disaster Loan (EIDL)
a working capital loan that...
Joint Venture
In the SBA Mentor-Protégé Program...
Certificate of Competency
A certificate issued by the Small Bus...
Balance Sheet or Statement of Financial Position
Assets = Liabilities + Equity...
Limited Partnership
A business organization with one or...
Negotiation
Contracting through the use of...
Contracting Officer
A person with the authority to...
Cash Available to Service Additional Debt (CASAD)
The cash flow determined that...

Get the quick rundown on SBA Loans

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