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.
Contract
A mutually binding legal rel..
Contracting
Purchasing, renting, leasing, or...
Certified 8(a) Firm
A firm owned and operated by socially and...
Cash-basis Accounting
records revenue when cash is...
Guarantor
The legal entity and...
Limited Partnership
A business organization with one or...
Schedule of Liabilities
A business debt schedule that lists all of the debts...
Standard Industrial Classification (SIC) Code
A code representing a category within...
Physical Loans
Funds to repair/replace dis...
Small Business Development Centers (SBDC)
SBDCs offer a broad spec...
Normal Gross Margin
The margin that would have been...
Small Business Innovative Research (SBIR) Contract
A type of contract designed to...
Credit Elsewhere Test (CET)
The test to determine the...
Joint Venture
In the SBA Mentor-Protégé Program...
Working Capital (WC)
The amount of current assets that...

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