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.
Days Payable
A measure of the average time a...
Economic Injury Disaster Loan (EIDL)
a working capital loan that...
Income Statement
Shows the entity’s income and...
Primary Activity
The major business activity of...
Liabilities
A financial obligation...
Contracting
Purchasing, renting, leasing, or...
Substantial Damage
This means uninsured or otherwise uncompensated...
Loan Authorization and Agreement (LA&A)
A contract between SBA and the borrower that...
Coastal Barrier Resource Area (COBRA)
A flood prone area in which...
Companion File
When an applicant has another application filed...
Normal Annual Sales
Those sales that would have...
Amortization
A non-cash operating expense that...
Lien
A legal claim against an...
Cash Available to Service Additional Debt (CASAD)
The cash flow determined that...
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.