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.
Physical Loans
Funds to repair/replace dis...
Amortization
A non-cash operating expense that...
Income Statement
Shows the entity’s income and...
Prime Contract
A contract awarded directly...
Business Activity
The business (or loss) activity of...
Loan Authorization and Agreement (LA&A)
A contract between SBA and the borrower that...
Contracting
Purchasing, renting, leasing, or...
Liabilities
A financial obligation...
GPM%
The measure of every sales dollar left...
Current Liabilities
A balance sheet item, which...
Hardship Waiver
Method used to approve a...
Subcontract
A contract between a prime cont...
Applicant Entity
The business entity requesting...
Days Receivable
A measure of the average time a...
Normal Gross Margin
The margin that would have been...

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