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.
Lien
A legal claim against an...
Cash Flow Test
Part of the CET that determines if...
Applicant/Co-Applicant
Business entity and person requesting...
Federal Acquisition Regulation (FAR)
The body of regulations which is...
Contractor Team Arrangement
An arrangement in which...
Days Receivable
A measure of the average time a...
Affiliates
Business concerns, organizations, or...
Limited Partnership
A business organization with one or...
Phase 2
Process to be used to determine economic injury for...
Defense Acquisition Regulatory Council (DARC)
A group composed of rep...
Fair and Reasonable Price
A price that is fair to both parties...
Depreciation
A non-cash operating expense that...
Certified 8(a) Firm
A firm owned and operated by socially and...
Cash-basis Accounting
records revenue when cash is...
Duplicated Interest
The amount of interest exp...

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