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
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.
Emerging Small Business
A small business concern whose...
Assets
The amount of current assets that is left...
NAICS
NAICS codes are common...
Defense Contractor
Any person who enters into...
P&L (Profit and Loss Statement)
also considered as Income Statement or...
GPM%
The measure of every sales dollar left...
Injury Analysis
Measures the effects of...
Protégé
A firm in a developmental stage that...
Amortization
A non-cash operating expense that...
Partnering
A mutually beneficial business-to-bus...
Depreciation
A non-cash operating expense that...
Cash-basis Accounting
records revenue when cash is...
Partnership
A type of unincorporated business org...
Days Payable
A measure of the average time a...
Break-even Analysis
A calculation of the approximate sales...

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