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.
Physical Loans
Funds to repair/replace dis...
Guarantor
The legal entity and...
Contracting
Purchasing, renting, leasing, or...
Normal Gross Margin
The margin that would have been...
Standard Industrial Classification (SIC) Code
A code representing a category within...
NAICS
NAICS codes are common...
Defense Acquisition Regulatory Council (DARC)
A group composed of rep...
Limited Liability Entities (company/partnership)
An LLE provides business owners with...
Available Asset Test
Part of the CET that determines if an applicant(s) has...
Injury Period
The time period during...
Projection
An estimate of future economic or...
Collateral
Assets pledged by a borrower to secure a loan...
Phase 1
Process used to determine the...
Days Payable
A measure of the average time a...
Applicant Entity
The business entity requesting...

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