Subsidiary

A company for which a majority of the voting stock is owned by a holding company. For SBA’s purposes, a subsidiary is an affiliate; a company owned or controlled by the applicant business.

Updated on
September 8, 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.
Assets
The amount of current assets that is left...
Accrual Basis Accounting
recognizes revenues when earned and expenses are...
Normal Gross Margin
The margin that would have been...
Physical Loans
Funds to repair/replace dis...
Defense Contractor
Any person who enters into...
Federal Acquisition Regulation (FAR)
The body of regulations which is...
Small Business Development Centers (SBDC)
SBDCs offer a broad spec...
Income Statement
Shows the entity’s income and...
Standard Industrial Classification (SIC) Code
A code representing a category within...
Available Asset Test
Part of the CET that determines if an applicant(s) has...
Protégé
A firm in a developmental stage that...
Credit Score Test
Part of the home loan CET show a...
Primary Activity
The major business activity of...
Injury Analysis
Measures the effects of...
Depreciation
A non-cash operating expense that...

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