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.
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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.
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.
Certified 8(a) Firm
A firm owned and operated by socially and...
GPM%
The measure of every sales dollar left...
Affiliate
Business concerns are affiliates if one concern...
Cash-basis Accounting
records revenue when cash is...
Subcontract
A contract between a prime cont...
Federal Acquisition Regulation (FAR)
The body of regulations which is...
Credit Elsewhere Test (CET)
The test to determine the...
Working Capital (WC)
The amount of current assets that...
Electronic Data Interchange
Transmission of information bet...
Applicant/Co-Applicant
Business entity and person requesting...
Normal Annual Sales
Those sales that would have...
Certificate of Competency
A certificate issued by the Small Bus...
Equity
An accounting term used to...
Normal Gross Margin
The margin that would have been...
Accrual Basis Accounting
recognizes revenues when earned and expenses are...

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