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.
Available Asset Test
Part of the CET that determines if an applicant(s) has...
Operating Leases
are deducted on the company’s...
Affiliated Group
When two or more...
Principal
the owner(s) of the Applicant Entity that...
Trend Analysis
A comparative analysis of...
GPM%
The measure of every sales dollar left...
Equity
An accounting term used to...
Partnering
A mutually beneficial business-to-bus...
Physical Loans
Funds to repair/replace dis...
Hardship Waiver
Method used to approve a...
Credit Elsewhere Test (CET)
The test to determine the...
Negotiation
Contracting through the use of...
Depreciation
A non-cash operating expense that...
B/E (Business EIDL) Loan
A business loan that...
SCORE
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