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.
Applicant Individual
aka who is requesting an SBA loan...
Capital Leases
are for the purchase of fixed assets such as...
P&L (Profit and Loss Statement)
also considered as Income Statement or...
Fair and Reasonable Price
A price that is fair to both parties...
Loan Authorization and Agreement (LA&A)
A contract between SBA and the borrower that...
Subcontract
A contract between a prime cont...
Applicant/Co-Applicant
Business entity and person requesting...
Affiliates
Business concerns, organizations, or...
Working Capital (WC)
The amount of current assets that...
Cash-basis Accounting
records revenue when cash is...
Business Activity
The business (or loss) activity of...
Credit Elsewhere Test (CET)
The test to determine the...
Assets
The amount of current assets that is left...
Injury Analysis
Measures the effects of...
Normal Annual Sales
Those sales that would have...

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