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.
Days Payable
A measure of the average time a...
Prime Contract
A contract awarded directly...
Emerging Small Business
A small business concern whose...
Current Assets
A balance sheet item which equals...
Mentor
A business, usually large, or...
Working Capital (WC)
The amount of current assets that...
Substantial Damage
This means uninsured or otherwise uncompensated...
Primary Activity
The major business activity of...
B/E (Business EIDL) Loan
A business loan that...
Guarantor
The legal entity and...
Collateral
Assets pledged by a borrower to secure a loan...
GPM%
The measure of every sales dollar left...
Credit Elsewhere Test (CET)
The test to determine the...
Balance Sheet or Statement of Financial Position
Assets = Liabilities + Equity...
Days Receivable
A measure of the average time a...

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