Depreciation

A non-cash operating expense that reduces the value of a tangible asset as a result of wear and tear, age, or obsolescence. Depreciation is recorded in the financial statements of an entity as a reduction in the carrying value of the asset in the balance sheet and as an expense in the income statement.

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.
Normal Gross Margin
The margin that would have been...
Loan Authorization and Agreement (LA&A)
A contract between SBA and the borrower that...
Accrual Basis Accounting
recognizes revenues when earned and expenses are...
Economic Injury Disaster Loan (EIDL)
a working capital loan that...
Small Business
A business smaller than...
Applicant Individual
aka who is requesting an SBA loan...
Current Liabilities
A balance sheet item, which...
Injury Period
The time period during...
Companion File
When an applicant has another application filed...
Physical Loans
Funds to repair/replace dis...
Affiliated Group
When two or more...
Amortization
A non-cash operating expense that...
Capital Leases
are for the purchase of fixed assets such as...
Joint Venture
In the SBA Mentor-Protégé Program...
Collateral
Assets pledged by a borrower to secure a loan...

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