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.
Applicant Individual
aka who is requesting an SBA loan...
Operating Leases
are deducted on the company’s...
Joint Venture
In the SBA Mentor-Protégé Program...
Lien
A legal claim against an...
Principal
the owner(s) of the Applicant Entity that...
Affiliated Group
When two or more...
Small Business Innovative Research (SBIR) Contract
A type of contract designed to...
Collateral
Assets pledged by a borrower to secure a loan...
Contracting
Purchasing, renting, leasing, or...
Guarantor
The legal entity and...
Small Business Development Centers (SBDC)
SBDCs offer a broad spec...
Partnership
A type of unincorporated business org...
Subcontract
A contract between a prime cont...
Income Statement
Shows the entity’s income and...
Corporation (C-corp.)
The most common form of business org...

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