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.
Small Business
A business smaller than...
Guarantor
The legal entity and...
Prime Contract
A contract awarded directly...
Loan Authorization and Agreement (LA&A)
A contract between SBA and the borrower that...
Full and Open Competition
With respect to a contract action...
Fair and Reasonable Price
A price that is fair to both parties...
Credit Score Test
Part of the home loan CET show a...
Affiliate
Business concerns are affiliates if one concern...
Trend Analysis
A comparative analysis of...
Best and Final Offer
For negotiated procurements...
Physical Loans
Funds to repair/replace dis...
Accrual Basis Accounting
recognizes revenues when earned and expenses are...
Phase 1
Process used to determine the...
Projection
An estimate of future economic or...
Amortization
A non-cash operating expense that...

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