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.
Duplicated Interest
The amount of interest exp...
Standard Industrial Classification (SIC) Code
A code representing a category within...
Days Receivable
A measure of the average time a...
Normal Gross Margin
The margin that would have been...
Corporation (C-corp.)
The most common form of business org...
Subsidiary
A company for which a majority of the...
Defense Contractor
Any person who enters into...
Contracting Officer
A person with the authority to...
Small Business Innovative Research (SBIR) Contract
A type of contract designed to...
Applicant Individual
aka who is requesting an SBA loan...
Balance Sheet or Statement of Financial Position
Assets = Liabilities + Equity...
Intermediary Organization
Organizations that play a funda...
Emerging Small Business
A small business concern whose...
Normal Annual Sales
Those sales that would have...
Contractor Team Arrangement
An arrangement in which...

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