Glossary
SBA Terms

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
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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.
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SBA Microloans

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

Common SBA Terms

Everything you need to know about common terms used to discuss SBA Loans.
GPM%
The measure of every sales dollar left...
Joint Venture
In the SBA Mentor-Protégé Program...
Limited Liability Entities (company/partnership)
An LLE provides business owners with...
Certified 8(a) Firm
A firm owned and operated by socially and...
Affiliated Group
When two or more...
Best and Final Offer
For negotiated procurements...
Amortization
A non-cash operating expense that...
Coastal Barrier Resource Area (COBRA)
A flood prone area in which...
Duplicated Interest
The amount of interest exp...
Liabilities
A financial obligation...
Prime Contract
A contract awarded directly...
Adjusted Net Worth
Post disaster fair market value of tangible...
Primary Activity
The major business activity of...
Normal Gross Margin
The margin that would have been...
P&L (Profit and Loss Statement)
also considered as Income Statement or...

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