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.
Hardship Waiver
Method used to approve a...
Subsidiary
A company for which a majority of the...
Affiliated Group
When two or more...
Joint Venture
In the SBA Mentor-Protégé Program...
Assets
The amount of current assets that is left...
Break-even Analysis
A calculation of the approximate sales...
Phase 2
Process to be used to determine economic injury for...
Coastal Barrier Resource Area (COBRA)
A flood prone area in which...
Contract
A mutually binding legal rel..
Comparative Analysis
Is designed to point out significant trends that...
Primary Activity
The major business activity of...
Credit Elsewhere Test (CET)
The test to determine the...
Projection
An estimate of future economic or...
Amortization
A non-cash operating expense that...
DBA
ex. Blocker & Sons LLC, doing business as Bob's Burgers

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