Principal

the owner(s) of the Applicant Entity that have a controlling financial interest in the business. SBA defines controlling interest as an owner who owns 20% or more of the Applicant Entity or are a General Partner or Managing Member regardless of ownership percentage.

Updated on
September 9, 2022
Published on
June 20, 2018
The 7(a) Loan Program, SBA’s most common loan program, includes assistance for each business with unique needs.
SBA 504 loans are very popular for long-term, fixed rate financing of up to $5 million for major fixed assets.
The average Microloan is about $13,000. The Microloans program provides loans up to $50,000 to small businesses.
SBA Glossary

Common SBA Terms

Everything you need to know about common terms used to discuss SBA Loans.
Adjusted Net Worth
Post disaster fair market value of tangible...
Affiliate
Business concerns are affiliates if one concern...
Current Liabilities
A balance sheet item, which...
Affiliated Group
When two or more...
Fair and Reasonable Price
A price that is fair to both parties...
Current Assets
A balance sheet item which equals...
Cash Available to Service Additional Debt (CASAD)
The cash flow determined that...
Credit Score Test
Part of the home loan CET show a...
Normal Gross Margin
The margin that would have been...
Break-even Analysis
A calculation of the approximate sales...
Assets
The amount of current assets that is left...
Contract
A mutually binding legal rel..
Cash Flow Test
Part of the CET that determines if...
Injury Period
The time period during...
Partnership
A type of unincorporated business org...

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