Glossary
SBA Terms

Capital Leases

are for the purchase of fixed assets (machinery/equipment) and these assets are shown on the company’s balance sheet and represent a fixed debt. If the lease is a capital lease, the debt should be shown as a Note Payable.

Updated on
September 9, 2022
Published on
June 20, 2018
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SBA 504 loans are very popular for long-term, fixed rate financing of up to $5 million for major fixed assets.
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SBA Glossary

Common SBA Terms

Everything you need to know about common terms used to discuss SBA Loans.
Duplicated Interest
The amount of interest exp...
Accrual Basis Accounting
recognizes revenues when earned and expenses are...
Days Payable
A measure of the average time a...
Days Receivable
A measure of the average time a...
Small Business
A business smaller than...
Guarantor
The legal entity and...
Balance Sheet or Statement of Financial Position
Assets = Liabilities + Equity...
P&L (Profit and Loss Statement)
also considered as Income Statement or...
Physical Loans
Funds to repair/replace dis...
Primary Activity
The major business activity of...
Prime Contract
A contract awarded directly...
Normal Gross Margin
The margin that would have been...
Affiliate
Business concerns are affiliates if one concern...
Business Activity
The business (or loss) activity of...
Normal Annual Sales
Those sales that would have...

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