Certificate of Competency

A certificate issued by the Small Business Administration (SBA) stating that the holder is "responsible" (in terms of capability, competency, capacity, credit, integrity, perseverance, and tenacity) for the purpose of receiving and performing a specific government contract.

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.
Protégé
A firm in a developmental stage that...
GPM%
The measure of every sales dollar left...
Substantial Damage
This means uninsured or otherwise uncompensated...
Break-even Analysis
A calculation of the approximate sales...
Hardship Waiver
Method used to approve a...
Partnering
A mutually beneficial business-to-bus...
Phase 2
Process to be used to determine economic injury for...
Lien
A legal claim against an...
Cash Flow Test
Part of the CET that determines if...
Accrual Basis Accounting
recognizes revenues when earned and expenses are...
Amortization
A non-cash operating expense that...
Sole Proprietor
an individual who...
Liabilities
A financial obligation...
Current Assets
A balance sheet item which equals...
Limited Liability Entities (company/partnership)
An LLE provides business owners with...

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