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.
Equity
An accounting term used to...
Federal Acquisition Regulation (FAR)
The body of regulations which is...
Cash-basis Accounting
records revenue when cash is...
Contract
A mutually binding legal rel..
Applicant Individual
aka who is requesting an SBA loan...
Primary Activity
The major business activity of...
Contracting
Purchasing, renting, leasing, or...
Accrual Basis Accounting
recognizes revenues when earned and expenses are...
Days Receivable
A measure of the average time a...
GPM%
The measure of every sales dollar left...
P&L (Profit and Loss Statement)
also considered as Income Statement or...
Days Payable
A measure of the average time a...
Principal
the owner(s) of the Applicant Entity that...
Current Liabilities
A balance sheet item, which...
Balance Sheet or Statement of Financial Position
Assets = Liabilities + Equity...

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