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.
Fair and Reasonable Price
A price that is fair to both parties...
Business Activity
The business (or loss) activity of...
Credit Elsewhere Test (CET)
The test to determine the...
Request for Proposal (RFP)
A document outlining a...
Income Statement
Shows the entity’s income and...
Applicant Entity
The business entity requesting...
Working Capital (WC)
The amount of current assets that...
Intermediary Organization
Organizations that play a funda...
Lien
A legal claim against an...
NAICS
NAICS codes are common...
Operating Leases
are deducted on the company’s...
Normal Annual Sales
Those sales that would have...
Cash Flow Test
Part of the CET that determines if...
Trend Analysis
A comparative analysis of...
Normal Gross Margin
The margin that would have been...

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