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.
Extraordinary Items
Additional expenses that are...
Normal Annual Sales
Those sales that would have...
Capital Leases
are for the purchase of fixed assets such as...
Affiliate
Business concerns are affiliates if one concern...
Small Business Development Centers (SBDC)
SBDCs offer a broad spec...
Certificate of Competency
A certificate issued by the Small Bus...
Assets
The amount of current assets that is left...
Cash Available to Service Additional Debt (CASAD)
The cash flow determined that...
NAICS
NAICS codes are common...
Fair and Reasonable Price
A price that is fair to both parties...
Injury Period
The time period during...
Working Capital (WC)
The amount of current assets that...
Comparative Analysis
Is designed to point out significant trends that...
Partnering
A mutually beneficial business-to-bus...
Negotiation
Contracting through the use of...

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