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.
Equity
An accounting term used to...
Affiliates
Business concerns, organizations, or...
Extraordinary Items
Additional expenses that are...
Small Business
A business smaller than...
Cash Flow Test
Part of the CET that determines if...
Loan Authorization and Agreement (LA&A)
A contract between SBA and the borrower that...
Normal Gross Margin
The margin that would have been...
Hardship Waiver
Method used to approve a...
Working Capital (WC)
The amount of current assets that...
NAICS
NAICS codes are common...
P&L (Profit and Loss Statement)
also considered as Income Statement or...
Duplicated Interest
The amount of interest exp...
Applicant/Co-Applicant
Business entity and person requesting...
Injury Analysis
Measures the effects of...
Intermediary Organization
Organizations that play a funda...

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