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.
NAICS
NAICS codes are common...
Affiliate
Business concerns are affiliates if one concern...
Small Business Innovative Research (SBIR) Contract
A type of contract designed to...
Collateral
Assets pledged by a borrower to secure a loan...
Extraordinary Items
Additional expenses that are...
Cash-basis Accounting
records revenue when cash is...
Fair and Reasonable Price
A price that is fair to both parties...
Current Assets
A balance sheet item which equals...
Hardship Waiver
Method used to approve a...
Business Activity
The business (or loss) activity of...
Credit Score Test
Part of the home loan CET show a...
Limited Partnership
A business organization with one or...
Days Payable
A measure of the average time a...
Break-even Analysis
A calculation of the approximate sales...
Balance Sheet or Statement of Financial Position
Assets = Liabilities + Equity...

Get the quick rundown on SBA Loans

Join over 4,000+ small business owners already growing with us.