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.
DBA
ex. Blocker & Sons LLC, doing business as Bob's Burgers
Duplicated Interest
The amount of interest exp...
Current Liabilities
A balance sheet item, which...
Partnering
A mutually beneficial business-to-bus...
Substantial Damage
This means uninsured or otherwise uncompensated...
Liabilities
A financial obligation...
Defense Contractor
Any person who enters into...
Corporation (C-corp.)
The most common form of business org...
Intermediary Organization
Organizations that play a funda...
Cash Flow Test
Part of the CET that determines if...
Normal Gross Margin
The margin that would have been...
Federal Acquisition Regulation (FAR)
The body of regulations which is...
Certificate of Competency
A certificate issued by the Small Bus...
Affiliates
Business concerns, organizations, or...
Full and Open Competition
With respect to a contract action...

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