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.
Affiliate
Business concerns are affiliates if one concern...
Certified 8(a) Firm
A firm owned and operated by socially and...
Injury Period
The time period during...
Cash Flow Test
Part of the CET that determines if...
Small Disadvantaged Business Concern
A small business concern that...
Hardship Waiver
Method used to approve a...
P&L (Profit and Loss Statement)
also considered as Income Statement or...
Applicant Individual
aka who is requesting an SBA loan...
Phase 1
Process used to determine the...
Subsidiary
A company for which a majority of the...
Capital Leases
are for the purchase of fixed assets such as...
Applicant Entity
The business entity requesting...
Sole Proprietor
an individual who...
Trend Analysis
A comparative analysis of...
Projection
An estimate of future economic or...

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