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.
Principal
the owner(s) of the Applicant Entity that...
Federal Acquisition Regulation (FAR)
The body of regulations which is...
Current Assets
A balance sheet item which equals...
Adjusted Net Worth
Post disaster fair market value of tangible...
Affiliates
Business concerns, organizations, or...
Substantial Damage
This means uninsured or otherwise uncompensated...
Certified 8(a) Firm
A firm owned and operated by socially and...
Assets
The amount of current assets that is left...
Days Payable
A measure of the average time a...
Available Asset Test
Part of the CET that determines if an applicant(s) has...
Best and Final Offer
For negotiated procurements...
Intermediary Organization
Organizations that play a funda...
Economic Injury Disaster Loan (EIDL)
a working capital loan that...
Fair and Reasonable Price
A price that is fair to both parties...
Loan Authorization and Agreement (LA&A)
A contract between SBA and the borrower that...

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