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.
Coastal Barrier Resource Area (COBRA)
A flood prone area in which...
Guarantor
The legal entity and...
Defense Acquisition Regulatory Council (DARC)
A group composed of rep...
Acquisition
The acquiring of supplies or...
Cash Flow Test
Part of the CET that determines if...
Contractor Team Arrangement
An arrangement in which...
Lien
A legal claim against an...
Assets
The amount of current assets that is left...
Credit Score Test
Part of the home loan CET show a...
Mentor
A business, usually large, or...
Phase 1
Process used to determine the...
Injury Analysis
Measures the effects of...
Working Capital (WC)
The amount of current assets that...
Subcontract
A contract between a prime cont...
Substantial Damage
This means uninsured or otherwise uncompensated...

Get the quick rundown on SBA Loans

Join over 4,000+ small business owners already growing with us.