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...
Comparative Analysis
Is designed to point out significant trends that...
Loan Authorization and Agreement (LA&A)
A contract between SBA and the borrower that...
Certificate of Competency
A certificate issued by the Small Bus...
Liabilities
A financial obligation...
Accrual Basis Accounting
recognizes revenues when earned and expenses are...
Contract
A mutually binding legal rel..
Standard Industrial Classification (SIC) Code
A code representing a category within...
Mentor
A business, usually large, or...
Prime Contract
A contract awarded directly...
Credit Score Test
Part of the home loan CET show a...
Depreciation
A non-cash operating expense that...
Credit Elsewhere Test (CET)
The test to determine the...
Defense Acquisition Regulatory Council (DARC)
A group composed of rep...
Subcontract
A contract between a prime cont...

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