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.
Balance Sheet or Statement of Financial Position
Assets = Liabilities + Equity...
Small Disadvantaged Business Concern
A small business concern that...
Normal Gross Margin
The margin that would have been...
Protégé
A firm in a developmental stage that...
Electronic Data Interchange
Transmission of information bet...
Subcontract
A contract between a prime cont...
Depreciation
A non-cash operating expense that...
Best and Final Offer
For negotiated procurements...
Loan Authorization and Agreement (LA&A)
A contract between SBA and the borrower that...
Sole Proprietor
an individual who...
Projection
An estimate of future economic or...
P&L (Profit and Loss Statement)
also considered as Income Statement or...
Adjusted Net Worth
Post disaster fair market value of tangible...
GPM%
The measure of every sales dollar left...
NAICS
NAICS codes are common...

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