Source: SBA.gov

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

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SBA Glossary

Common SBA Terms

Everything you need to know about common terms used to discuss SBA Loans.

Sole Proprietor

an individual who...

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Affiliates

Business concerns, organizations, or...

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Request for Proposal (RFP)

A document outlining a...

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Days Payable

A measure of the average time a...

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Limited Liability Entities (company/partnership)

An LLE provides business owners with...

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Current Liabilities

A balance sheet item, which...

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Normal Annual Sales

Those sales that would have...

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Working Capital (WC)

The amount of current assets that...

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Subcontract

A contract between a prime cont...

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Amortization

A non-cash operating expense that...

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Collateral

Assets pledged by a borrower to secure a loan...

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Applicant Entity

The business entity requesting...

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Certified 8(a) Firm

A firm owned and operated by socially and...

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Federal Acquisition Regulation (FAR)

The body of regulations which is...

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Affiliated Group

When two or more...

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