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.
P&L (Profit and Loss Statement)
also considered as Income Statement or...
Small Business Development Centers (SBDC)
SBDCs offer a broad spec...
Cash Flow Test
Part of the CET that determines if...
Liabilities
A financial obligation...
Operating Leases
are deducted on the company’s...
NAICS
NAICS codes are common...
Contract
A mutually binding legal rel..
Partnering
A mutually beneficial business-to-bus...
Cash-basis Accounting
records revenue when cash is...
Prime Contract
A contract awarded directly...
Joint Venture
In the SBA Mentor-Protégé Program...
B/E (Business EIDL) Loan
A business loan that...
Days Payable
A measure of the average time a...
Sole Proprietor
an individual who...
Normal Gross Margin
The margin that would have been...

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