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.
Substantial Damage
This means uninsured or otherwise uncompensated...
Lien
A legal claim against an...
Phase 2
Process to be used to determine economic injury for...
Balance Sheet or Statement of Financial Position
Assets = Liabilities + Equity...
SCORE
Counselors to America's Small Bus...
Subcontract
A contract between a prime cont...
Income Statement
Shows the entity’s income and...
Subsidiary
A company for which a majority of the...
Equity
An accounting term used to...
NAICS
NAICS codes are common...
Available Asset Test
Part of the CET that determines if an applicant(s) has...
Protégé
A firm in a developmental stage that...
Collateral
Assets pledged by a borrower to secure a loan...
Emerging Small Business
A small business concern whose...
Guarantor
The legal entity and...

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