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.
Fair and Reasonable Price
A price that is fair to both parties...
Small Business Development Centers (SBDC)
SBDCs offer a broad spec...
Subcontract
A contract between a prime cont...
Projection
An estimate of future economic or...
Working Capital (WC)
The amount of current assets that...
Applicant Individual
aka who is requesting an SBA loan...
Liabilities
A financial obligation...
Depreciation
A non-cash operating expense that...
Cash Flow Test
Part of the CET that determines if...
Contracting
Purchasing, renting, leasing, or...
Adjusted Net Worth
Post disaster fair market value of tangible...
Cash Available to Service Additional Debt (CASAD)
The cash flow determined that...
Duplicated Interest
The amount of interest exp...
Current Liabilities
A balance sheet item, which...
Defense Contractor
Any person who enters into...

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