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.
Collateral
Assets pledged by a borrower to secure a loan...
NAICS
NAICS codes are common...
Joint Venture
In the SBA Mentor-Protégé Program...
Defense Acquisition Regulatory Council (DARC)
A group composed of rep...
Request for Proposal (RFP)
A document outlining a...
Income Statement
Shows the entity’s income and...
Standard Industrial Classification (SIC) Code
A code representing a category within...
SCORE
Counselors to America's Small Bus...
Current Assets
A balance sheet item which equals...
Credit Elsewhere Test (CET)
The test to determine the...
Mentor
A business, usually large, or...
Cash Available to Service Additional Debt (CASAD)
The cash flow determined that...
Acquisition
The acquiring of supplies or...
Affiliated Group
When two or more...
Normal Annual Sales
Those sales that would have...

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