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.
Substantial Damage
This means uninsured or otherwise uncompensated...
Liabilities
A financial obligation...
Affiliated Group
When two or more...
Current Assets
A balance sheet item which equals...
Small Business
A business smaller than...
Injury Period
The time period during...
Accrual Basis Accounting
recognizes revenues when earned and expenses are...
Principal
the owner(s) of the Applicant Entity that...
Credit Elsewhere Test (CET)
The test to determine the...
Best and Final Offer
For negotiated procurements...
Credit Score Test
Part of the home loan CET show a...
Certified 8(a) Firm
A firm owned and operated by socially and...
Defense Contractor
Any person who enters into...
Certificate of Competency
A certificate issued by the Small Bus...
Physical Loans
Funds to repair/replace dis...

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