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.
Small Disadvantaged Business Concern
A small business concern that...
Hardship Waiver
Method used to approve a...
Days Payable
A measure of the average time a...
Contracting Officer
A person with the authority to...
Defense Contractor
Any person who enters into...
Accrual Basis Accounting
recognizes revenues when earned and expenses are...
Emerging Small Business
A small business concern whose...
Comparative Analysis
Is designed to point out significant trends that...
Trend Analysis
A comparative analysis of...
Credit Elsewhere Test (CET)
The test to determine the...
Phase 2
Process to be used to determine economic injury for...
Capital Leases
are for the purchase of fixed assets such as...
Acquisition
The acquiring of supplies or...
Intermediary Organization
Organizations that play a funda...
Full and Open Competition
With respect to a contract action...

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