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.
Guarantor
The legal entity and...
SAE (Stand Alone Economic Injury Disaster Loan)
provide necessary working capital to...
Schedule of Liabilities
A business debt schedule that lists all of the debts...
Primary Activity
The major business activity of...
Capital Leases
are for the purchase of fixed assets such as...
Protégé
A firm in a developmental stage that...
Equity
An accounting term used to...
Assets
The amount of current assets that is left...
Collateral
Assets pledged by a borrower to secure a loan...
Duplicated Interest
The amount of interest exp...
Injury Period
The time period during...
Available Asset Test
Part of the CET that determines if an applicant(s) has...
Applicant Entity
The business entity requesting...
Limited Liability Entities (company/partnership)
An LLE provides business owners with...
Adjusted Net Worth
Post disaster fair market value of tangible...

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