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.
Depreciation
A non-cash operating expense that...
Defense Contractor
Any person who enters into...
Defense Acquisition Regulatory Council (DARC)
A group composed of rep...
Days Payable
A measure of the average time a...
Best and Final Offer
For negotiated procurements...
Business Activity
The business (or loss) activity of...
Loan Authorization and Agreement (LA&A)
A contract between SBA and the borrower that...
Fair and Reasonable Price
A price that is fair to both parties...
Limited Liability Entities (company/partnership)
An LLE provides business owners with...
Cash-basis Accounting
records revenue when cash is...
Applicant/Co-Applicant
Business entity and person requesting...
Adjusted Net Worth
Post disaster fair market value of tangible...
Request for Proposal (RFP)
A document outlining a...
Subsidiary
A company for which a majority of the...
Physical Loans
Funds to repair/replace dis...

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