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

SBA 7a Loans

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SBA Glossary

Common SBA Terms

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

Mentor

A business, usually large, or...

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Affiliated Group

When two or more...

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Phase 2

Process to be used to determine economic injury for...

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Days Receivable

A measure of the average time a...

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Defense Acquisition Regulatory Council (DARC)

A group composed of rep...

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Available Asset Test

Part of the CET that determines if an applicant(s) has...

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SCORE

Counselors to America's Small Bus...

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SAE (Stand Alone Economic Injury Disaster Loan)

provide necessary working capital to...

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Cash Flow Test

Part of the CET that determines if...

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Working Capital (WC)

The amount of current assets that...

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Normal Annual Sales

Those sales that would have...

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GPM%

The measure of every sales dollar left...

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Current Assets

A balance sheet item which equals...

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Small Disadvantaged Business Concern

A small business concern that...

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Protégé

A firm in a developmental stage that...

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