Certificate of Competency

A certificate issued by the Small Business Administration (SBA) stating that the holder is "responsible" (in terms of capability, competency, capacity, credit, integrity, perseverance, and tenacity) for the purpose of receiving and performing a specific government contract.

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.
Hardship Waiver
Method used to approve a...
Subsidiary
A company for which a majority of the...
Principal
the owner(s) of the Applicant Entity that...
Working Capital (WC)
The amount of current assets that...
Current Assets
A balance sheet item which equals...
Amortization
A non-cash operating expense that...
Economic Injury Disaster Loan (EIDL)
a working capital loan that...
Guarantor
The legal entity and...
Cash-basis Accounting
records revenue when cash is...
Intermediary Organization
Organizations that play a funda...
S-Corporation
A form of corporation, allowed by...
GPM%
The measure of every sales dollar left...
Loan Authorization and Agreement (LA&A)
A contract between SBA and the borrower that...
Business Activity
The business (or loss) activity of...
Trend Analysis
A comparative analysis of...

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