Glossary
SBA Terms

Fair and Reasonable Price

A price that is fair to both parties, considering the agreed-upon conditions, promised quality, and timeliness of contract performance. "Fair and reasonable" price is subject to statutory and regulatory limitations.

Updated on
September 9, 2022
Published on
June 20, 2018
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SBA 7a Loans

The 7(a) Loan Program, SBA’s most common loan program, includes assistance for each business with unique needs.
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SBA 504 Loans

SBA 504 loans are very popular for long-term, fixed rate financing of up to $5 million for major fixed assets.
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SBA Microloans

The average Microloan is about $13,000. The Microloans program provides loans up to $50,000 to small businesses.
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SBA Glossary

Common SBA Terms

Everything you need to know about common terms used to discuss SBA Loans.
Subsidiary
A company for which a majority of the...
Income Statement
Shows the entity’s income and...
Primary Activity
The major business activity of...
Certified 8(a) Firm
A firm owned and operated by socially and...
Applicant/Co-Applicant
Business entity and person requesting...
Joint Venture
In the SBA Mentor-Protégé Program...
Trend Analysis
A comparative analysis of...
Guarantor
The legal entity and...
Prime Contract
A contract awarded directly...
Acquisition
The acquiring of supplies or...
Working Capital (WC)
The amount of current assets that...
Days Receivable
A measure of the average time a...
Principal
the owner(s) of the Applicant Entity that...
Normal Gross Margin
The margin that would have been...
Fair and Reasonable Price
A price that is fair to both parties...

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