Practice Test Geeks(SBA) Small Business Administration Certified Business Practice Test
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Financial Management & Funding Resources Flashcards

7 cards from real SBA practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

Read the first 7 Financial Management & Funding Resources flashcards as text

  1. Which SBA loan program is specifically designed to provide microloans up to $50,000 to small businesses and certain non-profit childcare centers?

    Answer: SBA Microloan Program

    The SBA Microloan Program provides loans up to $50,000 through nonprofit intermediary lenders to help small businesses start up and expand.

  2. A small business owner wants to purchase a commercial building to house their operations. Which SBA loan program is MOST appropriate for this long-term fixed asset acquisition?

    Answer: SBA 504 Loan Program

    The SBA 504 Loan Program is designed for major fixed assets like real estate and heavy equipment, offering long-term, fixed-rate financing.

  3. What is the maximum loan amount available under the standard SBA 7(a) loan program?

    Answer: $5 million

    The maximum loan amount for the SBA 7(a) program is $5 million, making it the primary program for a wide range of business financing needs.

  4. In SBA financial analysis, what does the Debt Service Coverage Ratio (DSCR) measure?

    Answer: The ability of business cash flow to cover loan payments

    DSCR measures whether a business generates enough net operating income to cover its debt obligations, with most lenders requiring a ratio of 1.25 or higher.

  5. Which financial statement shows a business's revenues, expenses, and profit or loss over a specific period of time?

    Answer: Income Statement

    The Income Statement (also called Profit & Loss Statement) summarizes revenues and expenses over a reporting period to show net profit or loss.

  6. What is the primary purpose of the SBA's SBIC (Small Business Investment Company) program?

    Answer: To license private investment funds that provide equity and debt capital to small businesses

    SBICs are privately owned and managed investment funds licensed by the SBA that use their own capital plus SBA-guaranteed debentures to make equity and debt investments in small businesses.

  7. A business has current assets of $150,000 and current liabilities of $75,000. What is its current ratio?

    Answer: 2.0

    Current ratio = Current Assets ÷ Current Liabilities = $150,000 ÷ $75,000 = 2.0, indicating the business has $2 in current assets for every $1 in current liabilities.

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Sources & references

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  1. sba.gov — Test delivery, eligibility, renewal, score release, score validity · verified Oct 2026