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.
Economic Injury Disaster Loan (EIDL)
a working capital loan that...
Income Statement
Shows the entity’s income and...
Projection
An estimate of future economic or...
Joint Venture
In the SBA Mentor-Protégé Program...
Injury Analysis
Measures the effects of...
Days Receivable
A measure of the average time a...
Small Business Development Centers (SBDC)
SBDCs offer a broad spec...
Duplicated Interest
The amount of interest exp...
Normal Gross Margin
The margin that would have been...
Prime Contract
A contract awarded directly...
Cash Flow Test
Part of the CET that determines if...
Phase 1
Process used to determine the...
Electronic Data Interchange
Transmission of information bet...
Principal
the owner(s) of the Applicant Entity that...
DBA
ex. Blocker & Sons LLC, doing business as Bob's Burgers

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