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.
Contracting
Purchasing, renting, leasing, or...
Substantial Damage
This means uninsured or otherwise uncompensated...
Economic Injury Disaster Loan (EIDL)
a working capital loan that...
Emerging Small Business
A small business concern whose...
Contracting Officer
A person with the authority to...
Applicant Individual
aka who is requesting an SBA loan...
Cash Flow Test
Part of the CET that determines if...
Contractor Team Arrangement
An arrangement in which...
Affiliates
Business concerns, organizations, or...
Subcontract
A contract between a prime cont...
Available Asset Test
Part of the CET that determines if an applicant(s) has...
Working Capital (WC)
The amount of current assets that...
Fair and Reasonable Price
A price that is fair to both parties...
Operating Leases
are deducted on the company’s...
Lien
A legal claim against an...

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