Equity

An accounting term used to describe the net investment of owners or stockholders in a business. Under the accounting equation, equity also represents the result of assets less liabilities.

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.
Amortization
A non-cash operating expense that...
Companion File
When an applicant has another application filed...
Normal Annual Sales
Those sales that would have...
Contract
A mutually binding legal rel..
Full and Open Competition
With respect to a contract action...
Phase 1
Process used to determine the...
Break-even Analysis
A calculation of the approximate sales...
Principal
the owner(s) of the Applicant Entity that...
Business Activity
The business (or loss) activity of...
Partnership
A type of unincorporated business org...
Working Capital (WC)
The amount of current assets that...
Contracting
Purchasing, renting, leasing, or...
Loan Authorization and Agreement (LA&A)
A contract between SBA and the borrower that...
Accrual Basis Accounting
recognizes revenues when earned and expenses are...
Joint Venture
In the SBA Mentor-Protégé Program...

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