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.
Joint Venture
In the SBA Mentor-Protégé Program...
DBA
ex. Blocker & Sons LLC, doing business as Bob's Burgers
NAICS
NAICS codes are common...
Operating Leases
are deducted on the company’s...
Subsidiary
A company for which a majority of the...
SCORE
Counselors to America's Small Bus...
Days Payable
A measure of the average time a...
Subcontract
A contract between a prime cont...
Cash Available to Service Additional Debt (CASAD)
The cash flow determined that...
Depreciation
A non-cash operating expense that...
Defense Contractor
Any person who enters into...
Certified 8(a) Firm
A firm owned and operated by socially and...
Economic Injury Disaster Loan (EIDL)
a working capital loan that...
Amortization
A non-cash operating expense that...
Prime Contract
A contract awarded directly...

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