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.
Normal Gross Margin
The margin that would have been...
Affiliates
Business concerns, organizations, or...
Acquisition
The acquiring of supplies or...
Certificate of Competency
A certificate issued by the Small Bus...
Projection
An estimate of future economic or...
Current Liabilities
A balance sheet item, which...
Lien
A legal claim against an...
Defense Contractor
Any person who enters into...
Balance Sheet or Statement of Financial Position
Assets = Liabilities + Equity...
Partnership
A type of unincorporated business org...
Best and Final Offer
For negotiated procurements...
Days Receivable
A measure of the average time a...
Applicant Individual
aka who is requesting an SBA loan...
Business Activity
The business (or loss) activity of...
Income Statement
Shows the entity’s income and...

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