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.
Capital Leases
are for the purchase of fixed assets such as...
Request for Proposal (RFP)
A document outlining a...
Comparative Analysis
Is designed to point out significant trends that...
Full and Open Competition
With respect to a contract action...
GPM%
The measure of every sales dollar left...
NAICS
NAICS codes are common...
Affiliates
Business concerns, organizations, or...
Days Payable
A measure of the average time a...
Normal Annual Sales
Those sales that would have...
Negotiation
Contracting through the use of...
DBA
ex. Blocker & Sons LLC, doing business as Bob's Burgers
Certificate of Competency
A certificate issued by the Small Bus...
Days Receivable
A measure of the average time a...
Coastal Barrier Resource Area (COBRA)
A flood prone area in which...
Physical Loans
Funds to repair/replace dis...

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