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.
GPM%
The measure of every sales dollar left...
Available Asset Test
Part of the CET that determines if an applicant(s) has...
Amortization
A non-cash operating expense that...
Principal
the owner(s) of the Applicant Entity that...
Limited Liability Entities (company/partnership)
An LLE provides business owners with...
Credit Score Test
Part of the home loan CET show a...
Full and Open Competition
With respect to a contract action...
Mentor
A business, usually large, or...
Coastal Barrier Resource Area (COBRA)
A flood prone area in which...
Operating Leases
are deducted on the company’s...
Lien
A legal claim against an...
Balance Sheet or Statement of Financial Position
Assets = Liabilities + Equity...
Current Liabilities
A balance sheet item, which...
Normal Annual Sales
Those sales that would have...
Corporation (C-corp.)
The most common form of business org...

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