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.
Principal
the owner(s) of the Applicant Entity that...
Certified 8(a) Firm
A firm owned and operated by socially and...
Companion File
When an applicant has another application filed...
Partnership
A type of unincorporated business org...
P&L (Profit and Loss Statement)
also considered as Income Statement or...
Collateral
Assets pledged by a borrower to secure a loan...
Working Capital (WC)
The amount of current assets that...
Credit Score Test
Part of the home loan CET show a...
Business Activity
The business (or loss) activity of...
Injury Period
The time period during...
Certificate of Competency
A certificate issued by the Small Bus...
Joint Venture
In the SBA Mentor-Protégé Program...
Balance Sheet or Statement of Financial Position
Assets = Liabilities + Equity...
Sole Proprietor
an individual who...
Economic Injury Disaster Loan (EIDL)
a working capital loan that...

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