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.
Contracting
Purchasing, renting, leasing, or...
Balance Sheet or Statement of Financial Position
Assets = Liabilities + Equity...
Normal Gross Margin
The margin that would have been...
Working Capital (WC)
The amount of current assets that...
Limited Partnership
A business organization with one or...
Defense Acquisition Regulatory Council (DARC)
A group composed of rep...
Principal
the owner(s) of the Applicant Entity that...
Current Liabilities
A balance sheet item, which...
Break-even Analysis
A calculation of the approximate sales...
Certified 8(a) Firm
A firm owned and operated by socially and...
Extraordinary Items
Additional expenses that are...
Electronic Data Interchange
Transmission of information bet...
Primary Activity
The major business activity of...
Small Business Innovative Research (SBIR) Contract
A type of contract designed to...
Depreciation
A non-cash operating expense that...

Get the quick rundown on SBA Loans

Join over 4,000+ small business owners already growing with us.