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.
Small Business Innovative Research (SBIR) Contract
A type of contract designed to...
Prime Contract
A contract awarded directly...
Applicant Individual
aka who is requesting an SBA loan...
Accrual Basis Accounting
recognizes revenues when earned and expenses are...
Joint Venture
In the SBA Mentor-Protégé Program...
NAICS
NAICS codes are common...
Standard Industrial Classification (SIC) Code
A code representing a category within...
Economic Injury Disaster Loan (EIDL)
a working capital loan that...
Assets
The amount of current assets that is left...
Collateral
Assets pledged by a borrower to secure a loan...
S-Corporation
A form of corporation, allowed by...
SCORE
Counselors to America's Small Bus...
Contract
A mutually binding legal rel..
Acquisition
The acquiring of supplies or...
Normal Annual Sales
Those sales that would have...

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