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...
Defense Contractor
Any person who enters into...
Amortization
A non-cash operating expense that...
Depreciation
A non-cash operating expense that...
Certificate of Competency
A certificate issued by the Small Bus...
Assets
The amount of current assets that is left...
Guarantor
The legal entity and...
Partnering
A mutually beneficial business-to-bus...
Substantial Damage
This means uninsured or otherwise uncompensated...
Credit Elsewhere Test (CET)
The test to determine the...
Current Assets
A balance sheet item which equals...
Negotiation
Contracting through the use of...
Defense Acquisition Regulatory Council (DARC)
A group composed of rep...
Intermediary Organization
Organizations that play a funda...
Loan Authorization and Agreement (LA&A)
A contract between SBA and the borrower that...

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