Subsidiary

A company for which a majority of the voting stock is owned by a holding company. For SBA’s purposes, a subsidiary is an affiliate; a company owned or controlled by the applicant business.

Updated on
September 8, 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.
Phase 2
Process to be used to determine economic injury for...
Electronic Data Interchange
Transmission of information bet...
SCORE
Counselors to America's Small Bus...
Guarantor
The legal entity and...
Contract
A mutually binding legal rel..
Small Business
A business smaller than...
Limited Liability Entities (company/partnership)
An LLE provides business owners with...
Primary Activity
The major business activity of...
Credit Elsewhere Test (CET)
The test to determine the...
Principal
the owner(s) of the Applicant Entity that...
Current Assets
A balance sheet item which equals...
Break-even Analysis
A calculation of the approximate sales...
Standard Industrial Classification (SIC) Code
A code representing a category within...
Operating Leases
are deducted on the company’s...
Balance Sheet or Statement of Financial Position
Assets = Liabilities + Equity...

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