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.
Days Payable
A measure of the average time a...
Emerging Small Business
A small business concern whose...
Injury Analysis
Measures the effects of...
Joint Venture
In the SBA Mentor-Protégé Program...
Standard Industrial Classification (SIC) Code
A code representing a category within...
Available Asset Test
Part of the CET that determines if an applicant(s) has...
Loan Authorization and Agreement (LA&A)
A contract between SBA and the borrower that...
Depreciation
A non-cash operating expense that...
Projection
An estimate of future economic or...
Limited Partnership
A business organization with one or...
Contractor Team Arrangement
An arrangement in which...
Defense Contractor
Any person who enters into...
Cash Available to Service Additional Debt (CASAD)
The cash flow determined that...
Small Business Innovative Research (SBIR) Contract
A type of contract designed to...
Current Assets
A balance sheet item which equals...

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