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.
Contracting Officer
A person with the authority to...
Amortization
A non-cash operating expense that...
Normal Gross Margin
The margin that would have been...
Cash-basis Accounting
records revenue when cash is...
Affiliates
Business concerns, organizations, or...
Credit Score Test
Part of the home loan CET show a...
Income Statement
Shows the entity’s income and...
Lien
A legal claim against an...
Protégé
A firm in a developmental stage that...
Loan Authorization and Agreement (LA&A)
A contract between SBA and the borrower that...
Applicant Individual
aka who is requesting an SBA loan...
Adjusted Net Worth
Post disaster fair market value of tangible...
Duplicated Interest
The amount of interest exp...
Capital Leases
are for the purchase of fixed assets such as...
S-Corporation
A form of corporation, allowed by...

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