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.
Working Capital (WC)
The amount of current assets that...
Principal
the owner(s) of the Applicant Entity that...
Phase 2
Process to be used to determine economic injury for...
Sole Proprietor
an individual who...
Contracting
Purchasing, renting, leasing, or...
Available Asset Test
Part of the CET that determines if an applicant(s) has...
Normal Annual Sales
Those sales that would have...
Full and Open Competition
With respect to a contract action...
Loan Authorization and Agreement (LA&A)
A contract between SBA and the borrower that...
Current Liabilities
A balance sheet item, which...
Applicant Individual
aka who is requesting an SBA loan...
S-Corporation
A form of corporation, allowed by...
Extraordinary Items
Additional expenses that are...
Certified 8(a) Firm
A firm owned and operated by socially and...
Small Disadvantaged Business Concern
A small business concern that...

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