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.
Equity
An accounting term used to...
Fair and Reasonable Price
A price that is fair to both parties...
Extraordinary Items
Additional expenses that are...
Amortization
A non-cash operating expense that...
Collateral
Assets pledged by a borrower to secure a loan...
Negotiation
Contracting through the use of...
Affiliated Group
When two or more...
Contracting
Purchasing, renting, leasing, or...
Partnering
A mutually beneficial business-to-bus...
Small Disadvantaged Business Concern
A small business concern that...
Intermediary Organization
Organizations that play a funda...
Subcontract
A contract between a prime cont...
Working Capital (WC)
The amount of current assets that...
Cash Flow Test
Part of the CET that determines if...
Small Business
A business smaller than...

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