Equity

An accounting term used to describe the net investment of owners or stockholders in a business. Under the accounting equation, equity also represents the result of assets less liabilities.

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.
Cash Flow Test
Part of the CET that determines if...
Extraordinary Items
Additional expenses that are...
Days Receivable
A measure of the average time a...
Applicant Individual
aka who is requesting an SBA loan...
Cash-basis Accounting
records revenue when cash is...
Coastal Barrier Resource Area (COBRA)
A flood prone area in which...
Physical Loans
Funds to repair/replace dis...
Depreciation
A non-cash operating expense that...
Current Assets
A balance sheet item which equals...
Operating Leases
are deducted on the company’s...
Acquisition
The acquiring of supplies or...
Phase 1
Process used to determine the...
Limited Liability Entities (company/partnership)
An LLE provides business owners with...
S-Corporation
A form of corporation, allowed by...
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