Glossary
SBA Terms

Principal

the owner(s) of the Applicant Entity that have a controlling financial interest in the business. SBA defines controlling interest as an owner who owns 20% or more of the Applicant Entity or are a General Partner or Managing Member regardless of ownership percentage.

Updated on
September 9, 2022
Published on
June 20, 2018
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SBA 7a Loans

The 7(a) Loan Program, SBA’s most common loan program, includes assistance for each business with unique needs.
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SBA 504 Loans

SBA 504 loans are very popular for long-term, fixed rate financing of up to $5 million for major fixed assets.
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SBA Microloans

The average Microloan is about $13,000. The Microloans program provides loans up to $50,000 to small businesses.
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SBA Glossary

Common SBA Terms

Everything you need to know about common terms used to discuss SBA Loans.
Companion File
When an applicant has another application filed...
Cash Available to Service Additional Debt (CASAD)
The cash flow determined that...
Contractor Team Arrangement
An arrangement in which...
Normal Gross Margin
The margin that would have been...
Small Business Innovative Research (SBIR) Contract
A type of contract designed to...
Subsidiary
A company for which a majority of the...
Federal Acquisition Regulation (FAR)
The body of regulations which is...
Standard Industrial Classification (SIC) Code
A code representing a category within...
Partnering
A mutually beneficial business-to-bus...
Normal Annual Sales
Those sales that would have...
Equity
An accounting term used to...
Negotiation
Contracting through the use of...
Primary Activity
The major business activity of...
Depreciation
A non-cash operating expense that...
Accrual Basis Accounting
recognizes revenues when earned and expenses are...

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