Glossary
SBA Terms

Primary Activity

The major business activity of the single legal entity or affiliated group, which is their predominant field of operation. (Commonly known as the Main Activity)

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.
Explore 7a loans

SBA 504 Loans

SBA 504 loans are very popular for long-term, fixed rate financing of up to $5 million for major fixed assets.
Explore 504 loans

SBA Microloans

The average Microloan is about $13,000. The Microloans program provides loans up to $50,000 to small businesses.
Explore microloans
SBA Glossary

Common SBA Terms

Everything you need to know about common terms used to discuss SBA Loans.
Small Business Innovative Research (SBIR) Contract
A type of contract designed to...
Assets
The amount of current assets that is left...
Balance Sheet or Statement of Financial Position
Assets = Liabilities + Equity...
Collateral
Assets pledged by a borrower to secure a loan...
Phase 1
Process used to determine the...
Limited Liability Entities (company/partnership)
An LLE provides business owners with...
P&L (Profit and Loss Statement)
also considered as Income Statement or...
Fair and Reasonable Price
A price that is fair to both parties...
Income Statement
Shows the entity’s income and...
Companion File
When an applicant has another application filed...
Lien
A legal claim against an...
Accrual Basis Accounting
recognizes revenues when earned and expenses are...
Available Asset Test
Part of the CET that determines if an applicant(s) has...
Applicant Entity
The business entity requesting...
Loan Authorization and Agreement (LA&A)
A contract between SBA and the borrower that...

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