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.
P&L (Profit and Loss Statement)
also considered as Income Statement or...
Affiliated Group
When two or more...
Phase 2
Process to be used to determine economic injury for...
Cash-basis Accounting
records revenue when cash is...
Projection
An estimate of future economic or...
Balance Sheet or Statement of Financial Position
Assets = Liabilities + Equity...
Principal
the owner(s) of the Applicant Entity that...
Applicant Individual
aka who is requesting an SBA loan...
Mentor
A business, usually large, or...
Federal Acquisition Regulation (FAR)
The body of regulations which is...
Applicant/Co-Applicant
Business entity and person requesting...
Capital Leases
are for the purchase of fixed assets such as...
Duplicated Interest
The amount of interest exp...
Schedule of Liabilities
A business debt schedule that lists all of the debts...
Small Business Innovative Research (SBIR) Contract
A type of contract designed to...

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