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.
Credit Elsewhere Test (CET)
The test to determine the...
Emerging Small Business
A small business concern whose...
Affiliated Group
When two or more...
Working Capital (WC)
The amount of current assets that...
B/E (Business EIDL) Loan
A business loan that...
Applicant/Co-Applicant
Business entity and person requesting...
Comparative Analysis
Is designed to point out significant trends that...
Days Payable
A measure of the average time a...
Small Business
A business smaller than...
Depreciation
A non-cash operating expense that...
Equity
An accounting term used to...
Contract
A mutually binding legal rel..
Loan Authorization and Agreement (LA&A)
A contract between SBA and the borrower that...
Assets
The amount of current assets that is left...
Protégé
A firm in a developmental stage that...

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