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.
Collateral
Assets pledged by a borrower to secure a loan...
Normal Gross Margin
The margin that would have been...
Adjusted Net Worth
Post disaster fair market value of tangible...
NAICS
NAICS codes are common...
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...
Principal
the owner(s) of the Applicant Entity that...
Break-even Analysis
A calculation of the approximate sales...
Loan Authorization and Agreement (LA&A)
A contract between SBA and the borrower that...
Subcontract
A contract between a prime cont...
Coastal Barrier Resource Area (COBRA)
A flood prone area in which...
Federal Acquisition Regulation (FAR)
The body of regulations which is...
Accrual Basis Accounting
recognizes revenues when earned and expenses are...
Applicant Entity
The business entity requesting...
Contracting
Purchasing, renting, leasing, or...

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