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LOCAL SBA OFFICES
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SBA maintains offices in all States, Puerto Rico, and Guam.
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LEASE
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A contract between the owner (lessor) and the tenant (lessee) stating the conditions under which the tenant may occupy or use real estate or equipment. Terms usually include a specific period of time and a predetermined rate.
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LEGAL RATE OF INTEREST
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The maximum rate of interest fixed by the laws of the various states, which a lender may charge a borrower for the use of money.
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LOWDOC
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See SBA LOWDOC.
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LENDING INSTITUTION
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Any institution, including a commercial bank, savings and loan association, commercial finance company, or other lender qualified to participate with SBA in the making of loans.
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LEVERAGED BUY-OUT
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The purchase of a business, with financing provided largely by borrowed money, often in the form of junk bonds.
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LIABILITY
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Debt owed by the company such as bank loans or accounts payable.
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LIEN
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A charge upon or security interest in real or personal property maintained to ensure the satisfaction of a debt or duty ordinarily arising by operation of law.
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LINE OF CREDIT
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A short-term loan, usually less than one year.
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LIQUIDATION
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The disposal, at maximum prices, of the collateral securing a loan, and the voluntary and enforced collection of the remaining loan balance from the obligators and/or guarantors.
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LIQUIDATION VALUE
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The net value realizable in the sale (ordinarily a forced sale) of a business or a particular asset.
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LITIGATION
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Refers to a loan in "liquidation status" which has been referred attorneys for legal action. Also: The practice of taking legal action through the judicial process.
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LOAN AGREEMENT
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Agreement to be executed by borrower, containing pertinent terms, conditions, covenants and restrictions.
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LOAN PAYOFF AMOUNT
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The total amount of money needed to meet a borrower's obligation on a loan. It is arrived at by accruing gross interest for one day and multiplying this figure by the number of days that exist between the date of the last repayment and the date on which the loan is to be completely paid off. This amount, known as accrued interest, is combined with the latest principal and escrow balances that are applicable to what is now referred to as the loan payoff amount. In the case where prepaid interest exceeds the accrued interest the latter is subtracted from the former and the difference is used to reduce the total amount owed.
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LOSS RATE
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A rate developed by comparing the ratio of total loans charged off to the total loans disbursed from inception of the program to the present date.
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LOSS RESERVE ADJUSTMENT RATE
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A reserve rate based upon the ratio of the aggregate net
charge offs (charge offs less recoveries) for the most recent five years to the total average loans outstanding for the comparable 5-year period.
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LOAN FORMS
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Several application forms for various SBA programs are maintained on our site - some are fillable and printable online.
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LESSEE
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The user of equipment or property being leased.
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LAWS & REGULATIONS - SBA
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For those pertinent to small business, please see...
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LINKING CRITERIA
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SBA requirements for establishing a link from the SBA website to another website. Choosing "More..." will lead you to SBA's linking criteria and and a submission form.
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LIQUID ASSETS
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Cash, checks and easily-convertible securities available to meet immediate and emergency needs.
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LISTSERVER
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A service where in individuals can subscribe to and receive SBA and other publications by electronic mail.
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LICENSE - LICENSES - BUSINESS REGISTRATION
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Businesses are licensed and registered at local and state levels of government. Each state has their own mechanism or criteria for obtaining licenses. Choosing "More..." will take you to state site listings.
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LOANS - Pollution Control Loan Program
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Pollution Control Loans are intended to provide loan guarantees to eligible small businesses for the financing of the planning, design, or installation of a pollution control facility. This facility must prevent, reduce, abate, or control any form of pollution, including recycling.
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LOANS - Veterans
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The SBA has not been provided funds for direct loans to Veterans, although Veterans are eligible for special consideration under SBA's guaranty loan programs. The special consideration given such individuals includes:
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LOANS - 7(A) Loan Guaranty Program
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Financing Your Business 7(A) Loan Guaranty Program General Description What SBA Seeks in a Loan Application Loan Amounts Eligibility Loan Maturities Interest Rates Associated Fees Guaranty Percents Prepayment Specialized 7(A) Loan Programs GENERAL DESCRIPTION The 7(a) Loan Guaranty Program is one of SBA's primary lending programs. It provides loans to small businesses unable to secure financing on reasonable terms through normal lending channels. The program operates through private-sector lenders that provide loans which are, in turn, guaranteed by the SBA -- the Agency has no funds for direct lending or grants.
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LOANS - SBA LowDoc Loan Program
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SBA LowDoc - Further streamlines the making of small business loans. The maximum loan-$150,000. Calls for a response from the SBA within 36 hours of receiving a complete application. Guaranty percent follows 7(a) policy
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LONG TERM
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Period usually greater than one year.
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LESSOR
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The party to a lease agreement who has leagl or tax title to equipment or property, who grants the lessee the right to use the equipment or property for the lease term, and who is entitled to the rental fees.
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LEASE RATE
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The period rental payment to a lessor for the use of assets. It may also be considered as the implicit interest rate in minimum lease payments.
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