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.
Business Activity
The business (or loss) activity of...
Request for Proposal (RFP)
A document outlining a...
Standard Industrial Classification (SIC) Code
A code representing a category within...
B/E (Business EIDL) Loan
A business loan that...
Current Liabilities
A balance sheet item, which...
Affiliate
Business concerns are affiliates if one concern...
Balance Sheet or Statement of Financial Position
Assets = Liabilities + Equity...
Partnership
A type of unincorporated business org...
Small Business Innovative Research (SBIR) Contract
A type of contract designed to...
Electronic Data Interchange
Transmission of information bet...
NAICS
NAICS codes are common...
Normal Gross Margin
The margin that would have been...
Depreciation
A non-cash operating expense that...
Days Receivable
A measure of the average time a...
GPM%
The measure of every sales dollar left...

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