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Glossary Of Small Business Terms
# A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

E

EARNING POWER – The demonstrated ability of a business to earn a profit, over time, while following good accounting practices. When a business shows a reasonable profit on invested capital after fully maintaining the business property, appropriately compensating its owner and employees, servicing its obligations, and fully recognizing its costs, the business may be said to have demonstrated earning power. Demonstrated earning power is the foremost test of the business risk in pressing upon an application for a loan.

EASEMENT – A right or privilege that a person may have on another’s land, as the right of a way or ingress or egress.

EDI (Electronic Data Interchange) – Transmission of information between computers using highly standardized electronic versions of common business documents.

EEOC (Equal Employment Opportunity Commission) – Equal Employment Opportunity Commission Small Business Information The U.S. Equal Employment Opportunity Commission (EEOC) enforces the federal laws that prohibit employment discrimination on the basis of an individual’s race, color, religion, sex, national origin, age, or disability.

EFTPS – See Electronic Federal Tax Payment System.

ELECTRONIC DATA INTERCHANGE – Transmission of information between computers using highly standardized electronic versions of common business documents.

ELECTRONIC FEDERAL TAX PAYMENT SYSTEM (EFTPS) – Electronic Federal Tax Payment System, provides an electronic system for paying federal taxes. The IRS replaced the current system of processing taxes in compliance with North American Free Trade Agreement (NAFTA) mandates, and now expedite the availability of funds and investment decision making information to the U.S. Treasury while providing flexible payment options to the business taxpayer

EMERGING SMALL BUSINESS – A small business concern whose size is no greater than 50 percent of the numerical size standard applicable to the Standard Industrial Classification code assigned to a contracting opportunity.

EMPLOYEES – The number of employees of a firm is its average number of persons employed for each pay period over the firm’s latest 12 months. Any person on the payroll must be included as one employee regardless of hours worked or temporary status. The number of employees of a firm in business under 12 months is based on the average for each pay period it has been in business.

ENTERPRISE – Aggregation of all establishments owned by a parent company. An enterprise can consist of a single, independent establishment or it can include subsidiaries or other branch establishments under the same ownership and control.

ENTREPRENEUR – One who assumes the financial risk of the initiation, operation and management of a given business or undertaking.

EPA (Environmental Protection Agency) – Environmental Protection Agency with laws and regulations as a major tool in protecting the environment. Find out about:

EQUITY – An accounting term used to describe the net investment of owners or stockholders in a business. Under the accounting equation, equity also represents the result of assets less liabilities.

EQUITY FINANCING – The provision of funds for capital or operating expenses in exchange for capital stock, stock purchase warrants and options in the business financed, without any guaranteed return, but with the opportunity to share in the company’s profits. Equity financing includes long-term subordinated securities containing stock options and/or warrants. Utilized in SBIC financing activities.

EQUITY PARTNERSHIP – A limited partnership arrangement for providing start-up and seed capital to businesses.

ESCROW ACCOUNTS – Funds placed in trust with a third party, by a borrower for a specific purpose and to be delivered to the borrower only upon the fulfillment of certain conditions.

ESTABLISHMENT – A single-location business unit, which may be independent–called a single-establishment enterprise–or owned by a parent enterprise.

EWCP (Export Working Capital (EWCP) Program) – The Export Working Capital (EWCP) Program was designed to provide short-term working capital to exporters. The EWCP is a combined effort of the SBA and the Export-Import Bank. The two agencies have joined their working capital programs to offer a unified approach to the government’s support of export financing. The EWCP uses a one-page application form and some documentation.

EXPORT ASSISTANCE CENTER USEAC – A USEAC is a center conducted by the SBA and the Department of Commerce to provide small and medium sized businesses with export information.

EXPORT WORKING CAPITAL – The Export Working Capital (EWCP) Program was designed to provide short-term working capital to exporters. The EWCP is a combined effort of the SBA and the Export-Import Bank. The two agencies have joined their working capital programs to offer a unified approach to the government’s support of export financing. The EWCP uses a one-page application form and some documentation.

 


 

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