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.
Duplicated Interest
The amount of interest exp...
Balance Sheet or Statement of Financial Position
Assets = Liabilities + Equity...
Cash-basis Accounting
records revenue when cash is...
DBA
ex. Blocker & Sons LLC, doing business as Bob's Burgers
Contracting Officer
A person with the authority to...
Certificate of Competency
A certificate issued by the Small Bus...
Defense Contractor
Any person who enters into...
Days Receivable
A measure of the average time a...
Contracting
Purchasing, renting, leasing, or...
P&L (Profit and Loss Statement)
also considered as Income Statement or...
Emerging Small Business
A small business concern whose...
Income Statement
Shows the entity’s income and...
Current Assets
A balance sheet item which equals...
Applicant Individual
aka who is requesting an SBA loan...
Lien
A legal claim against an...

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