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.
SAE (Stand Alone Economic Injury Disaster Loan)
provide necessary working capital to...
Applicant/Co-Applicant
Business entity and person requesting...
Accrual Basis Accounting
recognizes revenues when earned and expenses are...
Current Liabilities
A balance sheet item, which...
Cash Flow Test
Part of the CET that determines if...
Applicant Entity
The business entity requesting...
Operating Leases
are deducted on the company’s...
P&L (Profit and Loss Statement)
also considered as Income Statement or...
Contractor Team Arrangement
An arrangement in which...
Credit Elsewhere Test (CET)
The test to determine the...
Request for Proposal (RFP)
A document outlining a...
Phase 1
Process used to determine the...
Small Business Innovative Research (SBIR) Contract
A type of contract designed to...
Income Statement
Shows the entity’s income and...
Substantial Damage
This means uninsured or otherwise uncompensated...

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