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.
Affiliated Group
When two or more...
Business Activity
The business (or loss) activity of...
Current Assets
A balance sheet item which equals...
Contractor Team Arrangement
An arrangement in which...
Depreciation
A non-cash operating expense that...
Certificate of Competency
A certificate issued by the Small Bus...
Contracting Officer
A person with the authority to...
Lien
A legal claim against an...
Fair and Reasonable Price
A price that is fair to both parties...
GPM%
The measure of every sales dollar left...
Current Liabilities
A balance sheet item, which...
Principal
the owner(s) of the Applicant Entity that...
Negotiation
Contracting through the use of...
Limited Partnership
A business organization with one or...
Best and Final Offer
For negotiated procurements...

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