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.
Normal Gross Margin
The margin that would have been...
Economic Injury Disaster Loan (EIDL)
a working capital loan that...
Partnership
A type of unincorporated business org...
Guarantor
The legal entity and...
Applicant/Co-Applicant
Business entity and person requesting...
Mentor
A business, usually large, or...
Working Capital (WC)
The amount of current assets that...
Cash Flow Test
Part of the CET that determines if...
Partnering
A mutually beneficial business-to-bus...
Contracting Officer
A person with the authority to...
Limited Liability Entities (company/partnership)
An LLE provides business owners with...
Assets
The amount of current assets that is left...
Small Business Innovative Research (SBIR) Contract
A type of contract designed to...
Adjusted Net Worth
Post disaster fair market value of tangible...
Accrual Basis Accounting
recognizes revenues when earned and expenses are...

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