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.
Depreciation
A non-cash operating expense that...
Operating Leases
are deducted on the company’s...
Joint Venture
In the SBA Mentor-Protégé Program...
DBA
ex. Blocker & Sons LLC, doing business as Bob's Burgers
Injury Period
The time period during...
Contract
A mutually binding legal rel..
Primary Activity
The major business activity of...
Adjusted Net Worth
Post disaster fair market value of tangible...
Equity
An accounting term used to...
Credit Score Test
Part of the home loan CET show a...
Affiliate
Business concerns are affiliates if one concern...
Liabilities
A financial obligation...
Companion File
When an applicant has another application filed...
Electronic Data Interchange
Transmission of information bet...
Days Payable
A measure of the average time a...

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