Business Loan Glossary: Key Terms Every Small & Medium-Sized Business Should Know
Navigating the world of business loans can be complex, especially for small and medium-sized businesses. Our comprehensive business loan glossary is here to help. Whether you're applying for a loan or managing finances, understanding key terms is crucial to making informed decisions. Explore definitions, explanations, and expert insights to simplify your business loan journey and empower your financial growth.
What is a Available Asset Test
The Available Asset Test is a vital component of the Comprehensive Evaluation Tool (CET) used to assess whether applicants possess enough resources to borrow funds from the private sector.
The Available Asset Test is a vital component of the Comprehensive Evaluation Tool (CET) used to assess whether applicants possess enough resources to borrow funds from the private sector. This borrowed capital is intended to aid in repairing or replacing damages caused by disasters, without causing excessive financial strain. However, certain exceptions may apply to this evaluation process.
In simpler terms, the Available Asset Test helps determine if individuals or groups affected by disasters have enough assets to borrow money from private sources for recovery efforts without facing significant financial difficulties. This evaluation considers various factors, such as the value of assets owned by the applicants, to ensure that borrowing funds for disaster recovery won't burden them excessively. By undergoing this assessment, disaster-affected parties can access financial assistance while minimizing the risk of further financial hardship.