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.
Amortization
A non-cash operating expense that...
Accrual Basis Accounting
recognizes revenues when earned and expenses are...
Current Liabilities
A balance sheet item, which...
Operating Leases
are deducted on the company’s...
Full and Open Competition
With respect to a contract action...
Companion File
When an applicant has another application filed...
Balance Sheet or Statement of Financial Position
Assets = Liabilities + Equity...
Affiliates
Business concerns, organizations, or...
Affiliated Group
When two or more...
Cash Flow Test
Part of the CET that determines if...
Best and Final Offer
For negotiated procurements...
Subsidiary
A company for which a majority of the...
Liabilities
A financial obligation...
SCORE
Counselors to America's Small Bus...
Defense Contractor
Any person who enters into...

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