Glossary
SBA Terms

Contract

A mutually binding legal relationship obligating the seller to furnish supplies or services (including construction) and the buyer to pay for them.

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.
Explore 504 loans

SBA Microloans

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

Common SBA Terms

Everything you need to know about common terms used to discuss SBA Loans.
Prime Contract
A contract awarded directly...
Fair and Reasonable Price
A price that is fair to both parties...
Assets
The amount of current assets that is left...
Subsidiary
A company for which a majority of the...
P&L (Profit and Loss Statement)
also considered as Income Statement or...
Applicant Entity
The business entity requesting...
Cash Flow Test
Part of the CET that determines if...
Affiliated Group
When two or more...
Negotiation
Contracting through the use of...
GPM%
The measure of every sales dollar left...
Normal Annual Sales
Those sales that would have...
Equity
An accounting term used to...
Substantial Damage
This means uninsured or otherwise uncompensated...
Phase 2
Process to be used to determine economic injury for...
Days Payable
A measure of the average time a...

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