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.
Certified 8(a) Firm
A firm owned and operated by socially and...
Cash Flow Test
Part of the CET that determines if...
Affiliated Group
When two or more...
Applicant Entity
The business entity requesting...
Joint Venture
In the SBA Mentor-Protégé Program...
Equity
An accounting term used to...
Break-even Analysis
A calculation of the approximate sales...
Normal Annual Sales
Those sales that would have...
Lien
A legal claim against an...
Small Business Development Centers (SBDC)
SBDCs offer a broad spec...
Normal Gross Margin
The margin that would have been...
Injury Analysis
Measures the effects of...
Credit Elsewhere Test (CET)
The test to determine the...
Loan Authorization and Agreement (LA&A)
A contract between SBA and the borrower that...
Accrual Basis Accounting
recognizes revenues when earned and expenses are...

Get the quick rundown on SBA Loans

Join over 4,000+ small business owners already growing with us.