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.
Income Statement
Shows the entity’s income and...
Affiliated Group
When two or more...
Mentor
A business, usually large, or...
Small Business Innovative Research (SBIR) Contract
A type of contract designed to...
Balance Sheet or Statement of Financial Position
Assets = Liabilities + Equity...
Amortization
A non-cash operating expense that...
Principal
the owner(s) of the Applicant Entity that...
Companion File
When an applicant has another application filed...
Limited Liability Entities (company/partnership)
An LLE provides business owners with...
Intermediary Organization
Organizations that play a funda...
Phase 2
Process to be used to determine economic injury for...
Small Business
A business smaller than...
Credit Elsewhere Test (CET)
The test to determine the...
Defense Acquisition Regulatory Council (DARC)
A group composed of rep...
Phase 1
Process used to determine the...

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