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
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.
Working Capital (WC)
The amount of current assets that...
Applicant Entity
The business entity requesting...
Coastal Barrier Resource Area (COBRA)
A flood prone area in which...
Contracting Officer
A person with the authority to...
S-Corporation
A form of corporation, allowed by...
Days Receivable
A measure of the average time a...
Break-even Analysis
A calculation of the approximate sales...
Sole Proprietor
an individual who...
Fair and Reasonable Price
A price that is fair to both parties...
Normal Gross Margin
The margin that would have been...
Credit Score Test
Part of the home loan CET show a...
Injury Period
The time period during...
Corporation (C-corp.)
The most common form of business org...
Small Business Innovative Research (SBIR) Contract
A type of contract designed to...
Economic Injury Disaster Loan (EIDL)
a working capital loan that...

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