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 Available to Service Additional Debt (CASAD)
The cash flow determined that...
Mentor
A business, usually large, or...
NAICS
NAICS codes are common...
Physical Loans
Funds to repair/replace dis...
Companion File
When an applicant has another application filed...
Balance Sheet or Statement of Financial Position
Assets = Liabilities + Equity...
Normal Gross Margin
The margin that would have been...
Economic Injury Disaster Loan (EIDL)
a working capital loan that...
Liabilities
A financial obligation...
Trend Analysis
A comparative analysis of...
Certificate of Competency
A certificate issued by the Small Bus...
Adjusted Net Worth
Post disaster fair market value of tangible...
Injury Period
The time period during...
Collateral
Assets pledged by a borrower to secure a loan...
Cash-basis Accounting
records revenue when cash is...

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