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.
Limited Liability Entities (company/partnership)
An LLE provides business owners with...
Phase 1
Process used to determine the...
GPM%
The measure of every sales dollar left...
Amortization
A non-cash operating expense that...
Cash-basis Accounting
records revenue when cash is...
Substantial Damage
This means uninsured or otherwise uncompensated...
Acquisition
The acquiring of supplies or...
Partnership
A type of unincorporated business org...
Depreciation
A non-cash operating expense that...
Coastal Barrier Resource Area (COBRA)
A flood prone area in which...
Federal Acquisition Regulation (FAR)
The body of regulations which is...
Physical Loans
Funds to repair/replace dis...
Business Activity
The business (or loss) activity of...
Best and Final Offer
For negotiated procurements...
Loan Authorization and Agreement (LA&A)
A contract between SBA and the borrower that...

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