Glossary
SBA Terms

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
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SBA Glossary

Common SBA Terms

Everything you need to know about common terms used to discuss SBA Loans.
Liabilities
A financial obligation...
Applicant/Co-Applicant
Business entity and person requesting...
Small Business Innovative Research (SBIR) Contract
A type of contract designed to...
Subcontract
A contract between a prime cont...
Subsidiary
A company for which a majority of the...
Working Capital (WC)
The amount of current assets that...
Principal
the owner(s) of the Applicant Entity that...
Affiliate
Business concerns are affiliates if one concern...
Guarantor
The legal entity and...
Cash-basis Accounting
records revenue when cash is...
Break-even Analysis
A calculation of the approximate sales...
Current Liabilities
A balance sheet item, which...
Accrual Basis Accounting
recognizes revenues when earned and expenses are...
Contracting
Purchasing, renting, leasing, or...
Corporation (C-corp.)
The most common form of business org...

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