Accrual Basis Accounting

recognizes revenues when earned and expenses are matched with the related revenues and/or are reported when the expense occurs, not when the cash is paid deducts expenses when incurred.

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 1
Process used to determine the...
Primary Activity
The major business activity of...
Cash Flow Test
Part of the CET that determines if...
Balance Sheet or Statement of Financial Position
Assets = Liabilities + Equity...
Extraordinary Items
Additional expenses that are...
Cash-basis Accounting
records revenue when cash is...
Injury Analysis
Measures the effects of...
Sole Proprietor
an individual who...
Collateral
Assets pledged by a borrower to secure a loan...
Applicant Entity
The business entity requesting...
Projection
An estimate of future economic or...
Fair and Reasonable Price
A price that is fair to both parties...
Days Receivable
A measure of the average time a...
Equity
An accounting term used to...
Applicant Individual
aka who is requesting an SBA loan...

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