Credit Elsewhere Test (CET)

The test to determine the application’s disaster loan interest rate. This test analyzes the applicant’s available cash flow and net worth that may be used to overcome the disaster damage. The Business loan CET consists of two tests; 1) Cash Flow Test and 2) Available Assets Test. And, the Home loan CET consists of three tests; 1) Credit Score Test, 2) Cash Flow Test and 3) Available Assets Test.

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.
Days Receivable
A measure of the average time a...
Comparative Analysis
Is designed to point out significant trends that...
Balance Sheet or Statement of Financial Position
Assets = Liabilities + Equity...
Joint Venture
In the SBA Mentor-Protégé Program...
Credit Elsewhere Test (CET)
The test to determine the...
Subcontract
A contract between a prime cont...
Capital Leases
are for the purchase of fixed assets such as...
Business Activity
The business (or loss) activity of...
Small Business Innovative Research (SBIR) Contract
A type of contract designed to...
Emerging Small Business
A small business concern whose...
Normal Gross Margin
The margin that would have been...
Break-even Analysis
A calculation of the approximate sales...
Equity
An accounting term used to...
Available Asset Test
Part of the CET that determines if an applicant(s) has...
Limited Liability Entities (company/partnership)
An LLE provides business owners with...

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