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
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.
Projection
An estimate of future economic or...
Days Payable
A measure of the average time a...
Substantial Damage
This means uninsured or otherwise uncompensated...
Operating Leases
are deducted on the company’s...
Primary Activity
The major business activity of...
Phase 1
Process used to determine the...
Days Receivable
A measure of the average time a...
Capital Leases
are for the purchase of fixed assets such as...
Hardship Waiver
Method used to approve a...
Intermediary Organization
Organizations that play a funda...
Accrual Basis Accounting
recognizes revenues when earned and expenses are...
Contract
A mutually binding legal rel..
Liabilities
A financial obligation...
Cash Flow Test
Part of the CET that determines if...
Phase 2
Process to be used to determine economic injury for...

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