Glossary
SBA Terms

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
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SBA 7a Loans

The 7(a) Loan Program, SBA’s most common loan program, includes assistance for each business with unique needs.
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SBA 504 Loans

SBA 504 loans are very popular for long-term, fixed rate financing of up to $5 million for major fixed assets.
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SBA Microloans

The average Microloan is about $13,000. The Microloans program provides loans up to $50,000 to small businesses.
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SBA Glossary

Common SBA Terms

Everything you need to know about common terms used to discuss SBA Loans.
Loan Authorization and Agreement (LA&A)
A contract between SBA and the borrower that...
Best and Final Offer
For negotiated procurements...
Partnering
A mutually beneficial business-to-bus...
Small Disadvantaged Business Concern
A small business concern that...
Small Business Innovative Research (SBIR) Contract
A type of contract designed to...
Sole Proprietor
an individual who...
Extraordinary Items
Additional expenses that are...
Acquisition
The acquiring of supplies or...
Current Liabilities
A balance sheet item, which...
Credit Elsewhere Test (CET)
The test to determine the...
Phase 2
Process to be used to determine economic injury for...
Guarantor
The legal entity and...
Affiliated Group
When two or more...
Adjusted Net Worth
Post disaster fair market value of tangible...
Cash Flow Test
Part of the CET that determines if...

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