Loan Authorization and Agreement (LA&A)

A contract between SBA and the borrower that spells out the terms and conditions of the loan.

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...
Cash Flow Test
Part of the CET that determines if...
Break-even Analysis
A calculation of the approximate sales...
Full and Open Competition
With respect to a contract action...
Loan Authorization and Agreement (LA&A)
A contract between SBA and the borrower that...
Acquisition
The acquiring of supplies or...
Days Receivable
A measure of the average time a...
Prime Contract
A contract awarded directly...
Amortization
A non-cash operating expense that...
Lien
A legal claim against an...
Defense Contractor
Any person who enters into...
Accrual Basis Accounting
recognizes revenues when earned and expenses are...
Normal Gross Margin
The margin that would have been...
P&L (Profit and Loss Statement)
also considered as Income Statement or...
Substantial Damage
This means uninsured or otherwise uncompensated...

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