Collateral

Assets pledged by a borrower to secure a loan or other credit, and subject to seizure in the event of default. The preferred collateral for an SBA disaster loan is real estate

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.
Principal
the owner(s) of the Applicant Entity that...
Standard Industrial Classification (SIC) Code
A code representing a category within...
Corporation (C-corp.)
The most common form of business org...
Assets
The amount of current assets that is left...
Normal Annual Sales
Those sales that would have...
Negotiation
Contracting through the use of...
Mentor
A business, usually large, or...
Depreciation
A non-cash operating expense that...
Protégé
A firm in a developmental stage that...
Duplicated Interest
The amount of interest exp...
Phase 1
Process used to determine the...
Emerging Small Business
A small business concern whose...
Operating Leases
are deducted on the company’s...
Certified 8(a) Firm
A firm owned and operated by socially and...
Fair and Reasonable Price
A price that is fair to both parties...

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