Cash Flow Test

Part of the CET that determines if an applicant(s) has sufficient cash flow to borrow private sector funds to repair/replace uncompensated disaster damages without incurring undue hardship.

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.
Contract
A mutually binding legal rel..
Federal Acquisition Regulation (FAR)
The body of regulations which is...
Injury Period
The time period during...
Normal Gross Margin
The margin that would have been...
Cash Available to Service Additional Debt (CASAD)
The cash flow determined that...
Break-even Analysis
A calculation of the approximate sales...
Primary Activity
The major business activity of...
Credit Elsewhere Test (CET)
The test to determine the...
Days Payable
A measure of the average time a...
Cash-basis Accounting
records revenue when cash is...
Phase 2
Process to be used to determine economic injury for...
Small Business Innovative Research (SBIR) Contract
A type of contract designed to...
Balance Sheet or Statement of Financial Position
Assets = Liabilities + Equity...
Applicant/Co-Applicant
Business entity and person requesting...
Defense Contractor
Any person who enters into...

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