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.
Contracting
Purchasing, renting, leasing, or...
Principal
the owner(s) of the Applicant Entity that...
Amortization
A non-cash operating expense that...
Normal Gross Margin
The margin that would have been...
P&L (Profit and Loss Statement)
also considered as Income Statement or...
B/E (Business EIDL) Loan
A business loan that...
Certified 8(a) Firm
A firm owned and operated by socially and...
Assets
The amount of current assets that is left...
Contract
A mutually binding legal rel..
Collateral
Assets pledged by a borrower to secure a loan...
Income Statement
Shows the entity’s income and...
Applicant Entity
The business entity requesting...
Companion File
When an applicant has another application filed...
Prime Contract
A contract awarded directly...
Liabilities
A financial obligation...

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