Depreciation

A non-cash operating expense that reduces the value of a tangible asset as a result of wear and tear, age, or obsolescence. Depreciation is recorded in the financial statements of an entity as a reduction in the carrying value of the asset in the balance sheet and as an expense in the income statement.

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.
Contract
A mutually binding legal rel..
Credit Elsewhere Test (CET)
The test to determine the...
Lien
A legal claim against an...
Physical Loans
Funds to repair/replace dis...
Defense Contractor
Any person who enters into...
Trend Analysis
A comparative analysis of...
Collateral
Assets pledged by a borrower to secure a loan...
Certificate of Competency
A certificate issued by the Small Bus...
Joint Venture
In the SBA Mentor-Protégé Program...
Acquisition
The acquiring of supplies or...
Operating Leases
are deducted on the company’s...
DBA
ex. Blocker & Sons LLC, doing business as Bob's Burgers
Principal
the owner(s) of the Applicant Entity that...
Capital Leases
are for the purchase of fixed assets such as...
Current Assets
A balance sheet item which equals...

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