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.
Fair and Reasonable Price
A price that is fair to both parties...
Income Statement
Shows the entity’s income and...
Normal Gross Margin
The margin that would have been...
Applicant/Co-Applicant
Business entity and person requesting...
Contract
A mutually binding legal rel..
Affiliated Group
When two or more...
Contracting Officer
A person with the authority to...
NAICS
NAICS codes are common...
Collateral
Assets pledged by a borrower to secure a loan...
Cash Flow Test
Part of the CET that determines if...
Assets
The amount of current assets that is left...
Request for Proposal (RFP)
A document outlining a...
Principal
the owner(s) of the Applicant Entity that...
Companion File
When an applicant has another application filed...
Adjusted Net Worth
Post disaster fair market value of tangible...

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