Glossary
SBA Terms

Fair and Reasonable Price

A price that is fair to both parties, considering the agreed-upon conditions, promised quality, and timeliness of contract performance. "Fair and reasonable" price is subject to statutory and regulatory limitations.

Updated on
September 9, 2022
Published on
June 20, 2018
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SBA 7a Loans

The 7(a) Loan Program, SBA’s most common loan program, includes assistance for each business with unique needs.
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SBA 504 Loans

SBA 504 loans are very popular for long-term, fixed rate financing of up to $5 million for major fixed assets.
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SBA Microloans

The average Microloan is about $13,000. The Microloans program provides loans up to $50,000 to small businesses.
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SBA Glossary

Common SBA Terms

Everything you need to know about common terms used to discuss SBA Loans.
Applicant Entity
The business entity requesting...
P&L (Profit and Loss Statement)
also considered as Income Statement or...
SCORE
Counselors to America's Small Bus...
Days Receivable
A measure of the average time a...
Current Liabilities
A balance sheet item, which...
Days Payable
A measure of the average time a...
Credit Score Test
Part of the home loan CET show a...
Contracting
Purchasing, renting, leasing, or...
Protégé
A firm in a developmental stage that...
Full and Open Competition
With respect to a contract action...
Primary Activity
The major business activity of...
Collateral
Assets pledged by a borrower to secure a loan...
Credit Elsewhere Test (CET)
The test to determine the...
Accrual Basis Accounting
recognizes revenues when earned and expenses are...
Normal Annual Sales
Those sales that would have...

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