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.
Loan Authorization and Agreement (LA&A)
A contract between SBA and the borrower that...
Phase 1
Process used to determine the...
Current Liabilities
A balance sheet item, which...
Normal Gross Margin
The margin that would have been...
Request for Proposal (RFP)
A document outlining a...
Mentor
A business, usually large, or...
Cash Flow Test
Part of the CET that determines if...
Full and Open Competition
With respect to a contract action...
Partnership
A type of unincorporated business org...
Credit Elsewhere Test (CET)
The test to determine the...
Business Activity
The business (or loss) activity of...
Contractor Team Arrangement
An arrangement in which...
Contracting Officer
A person with the authority to...
Defense Acquisition Regulatory Council (DARC)
A group composed of rep...
Negotiation
Contracting through the use of...

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