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.
Capital Leases
are for the purchase of fixed assets such as...
Days Receivable
A measure of the average time a...
Cash-basis Accounting
records revenue when cash is...
Limited Liability Entities (company/partnership)
An LLE provides business owners with...
Credit Elsewhere Test (CET)
The test to determine the...
Substantial Damage
This means uninsured or otherwise uncompensated...
Acquisition
The acquiring of supplies or...
Break-even Analysis
A calculation of the approximate sales...
Liabilities
A financial obligation...
Request for Proposal (RFP)
A document outlining a...
Normal Gross Margin
The margin that would have been...
Protégé
A firm in a developmental stage that...
Prime Contract
A contract awarded directly...
Working Capital (WC)
The amount of current assets that...
Phase 1
Process used to determine the...

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