Credit Elsewhere Test (CET)

The test to determine the application’s disaster loan interest rate. This test analyzes the applicant’s available cash flow and net worth that may be used to overcome the disaster damage. The Business loan CET consists of two tests; 1) Cash Flow Test and 2) Available Assets Test. And, the Home loan CET consists of three tests; 1) Credit Score Test, 2) Cash Flow Test and 3) Available Assets Test.

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.
Cash Flow Test
Part of the CET that determines if...
Extraordinary Items
Additional expenses that are...
Collateral
Assets pledged by a borrower to secure a loan...
Partnering
A mutually beneficial business-to-bus...
Cash-basis Accounting
records revenue when cash is...
Joint Venture
In the SBA Mentor-Protégé Program...
Depreciation
A non-cash operating expense that...
Capital Leases
are for the purchase of fixed assets such as...
Primary Activity
The major business activity of...
Partnership
A type of unincorporated business org...
GPM%
The measure of every sales dollar left...
Income Statement
Shows the entity’s income and...
Principal
the owner(s) of the Applicant Entity that...
Subcontract
A contract between a prime cont...
Request for Proposal (RFP)
A document outlining a...

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