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.
Liabilities
A financial obligation...
Certified 8(a) Firm
A firm owned and operated by socially and...
Normal Annual Sales
Those sales that would have...
Subsidiary
A company for which a majority of the...
Negotiation
Contracting through the use of...
Coastal Barrier Resource Area (COBRA)
A flood prone area in which...
Amortization
A non-cash operating expense that...
Intermediary Organization
Organizations that play a funda...
Federal Acquisition Regulation (FAR)
The body of regulations which is...
Contracting
Purchasing, renting, leasing, or...
Applicant Entity
The business entity requesting...
Defense Acquisition Regulatory Council (DARC)
A group composed of rep...
Small Business Innovative Research (SBIR) Contract
A type of contract designed to...
Affiliated Group
When two or more...
Accrual Basis Accounting
recognizes revenues when earned and expenses are...

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