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.
Days Payable
A measure of the average time a...
Applicant Individual
aka who is requesting an SBA loan...
Credit Score Test
Part of the home loan CET show a...
Standard Industrial Classification (SIC) Code
A code representing a category within...
Fair and Reasonable Price
A price that is fair to both parties...
Substantial Damage
This means uninsured or otherwise uncompensated...
Normal Gross Margin
The margin that would have been...
Negotiation
Contracting through the use of...
Extraordinary Items
Additional expenses that are...
Limited Partnership
A business organization with one or...
Phase 2
Process to be used to determine economic injury for...
Working Capital (WC)
The amount of current assets that...
Adjusted Net Worth
Post disaster fair market value of tangible...
Contracting Officer
A person with the authority to...
Primary Activity
The major business activity of...

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