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.
Hardship Waiver
Method used to approve a...
Coastal Barrier Resource Area (COBRA)
A flood prone area in which...
Certified 8(a) Firm
A firm owned and operated by socially and...
Extraordinary Items
Additional expenses that are...
GPM%
The measure of every sales dollar left...
Schedule of Liabilities
A business debt schedule that lists all of the debts...
Loan Authorization and Agreement (LA&A)
A contract between SBA and the borrower that...
Small Business Innovative Research (SBIR) Contract
A type of contract designed to...
Federal Acquisition Regulation (FAR)
The body of regulations which is...
Negotiation
Contracting through the use of...
Intermediary Organization
Organizations that play a funda...
Cash Flow Test
Part of the CET that determines if...
Current Liabilities
A balance sheet item, which...
Limited Liability Entities (company/partnership)
An LLE provides business owners with...
Contractor Team Arrangement
An arrangement in which...

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