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.
Business Activity
The business (or loss) activity of...
Loan Authorization and Agreement (LA&A)
A contract between SBA and the borrower that...
NAICS
NAICS codes are common...
Contractor Team Arrangement
An arrangement in which...
Lien
A legal claim against an...
DBA
ex. Blocker & Sons LLC, doing business as Bob's Burgers
Comparative Analysis
Is designed to point out significant trends that...
Guarantor
The legal entity and...
Coastal Barrier Resource Area (COBRA)
A flood prone area in which...
Adjusted Net Worth
Post disaster fair market value of tangible...
Normal Gross Margin
The margin that would have been...
P&L (Profit and Loss Statement)
also considered as Income Statement or...
Days Receivable
A measure of the average time a...
Break-even Analysis
A calculation of the approximate sales...
Request for Proposal (RFP)
A document outlining a...

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