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.
Projection
An estimate of future economic or...
Fair and Reasonable Price
A price that is fair to both parties...
NAICS
NAICS codes are common...
Liabilities
A financial obligation...
Collateral
Assets pledged by a borrower to secure a loan...
Days Payable
A measure of the average time a...
Limited Partnership
A business organization with one or...
Working Capital (WC)
The amount of current assets that...
Mentor
A business, usually large, or...
Credit Elsewhere Test (CET)
The test to determine the...
Guarantor
The legal entity and...
Small Disadvantaged Business Concern
A small business concern that...
Normal Annual Sales
Those sales that would have...
Partnering
A mutually beneficial business-to-bus...
Economic Injury Disaster Loan (EIDL)
a working capital loan that...

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