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.
Economic Injury Disaster Loan (EIDL)
a working capital loan that...
Mentor
A business, usually large, or...
Intermediary Organization
Organizations that play a funda...
Coastal Barrier Resource Area (COBRA)
A flood prone area in which...
Substantial Damage
This means uninsured or otherwise uncompensated...
Corporation (C-corp.)
The most common form of business org...
Days Receivable
A measure of the average time a...
Schedule of Liabilities
A business debt schedule that lists all of the debts...
Applicant/Co-Applicant
Business entity and person requesting...
Credit Elsewhere Test (CET)
The test to determine the...
Subcontract
A contract between a prime cont...
Comparative Analysis
Is designed to point out significant trends that...
Available Asset Test
Part of the CET that determines if an applicant(s) has...
Affiliates
Business concerns, organizations, or...
Primary Activity
The major business activity of...

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