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PARTNERSHIP
A type of unincorporated business organization in which individuals, (general partners) manage the business and are equally liable for its debts; other individuals (limited partners) may invest but not be directly involved in management and are liable only to the extent of their investments. Or more generally, a legal relationship existing between two or more persons contractually associated as joint principals in a business.
PASS
This is the Procurement Automated Source System managed by the Small Business Administration. Registering with this central referral system of small businesses interested in selling to the government can bring you business with almost no effort. Registration is free.
PATENT
A patent secures to an inventor the exclusive right to make, use and sell an invention for 17 years. Inventors should contact the U.S. Department of Commerce Patent Office.
POWER OF ATTORNEY
An agreement authorizing someone (generally an attorney) to act as your agent. This agreement may be general (complete authority) or special (limited authority.)
PREFERRED LENDERS
Banks, which have a special written agreement with the SBA, which allows them to make a guaranteed SBA loan without prior SBA approval.
PRESENT VALUE
The discounted value of a payment or stream of payments to be received in the future [see FUTURE VALUE] taking into consideration a specific interest or discount rate. Present Value represents a series of future cash flows expressed in today's dollars.
PRICE
Cost, usually expressed in monetary terms.
PRIME RATE
Interest rate, which is charged business borrowers having the highest credit ratings, for short-term borrowing.
PRO FORMA
A hypothetical balance sheet and income statement based on a set of assumptions. Pro forma statements are used in business plans, loan requests and earnings reports.
PROFIT & LOSS (P & L) STATEMENT
A listing of income, expenses, and the resulting net profit or loss. This is also called an income statement.
PROFESSIONAL AND TRADE ASSOCIATIONS
Non-profit, cooperative and voluntary organizations that are designed to help their members in dealing with problems of mutual interest. In many instances professional and trade associations enter into an agreement with SBA to provide volunteer counseling to the small business community.
PROMISSORY NOTE
A document signed by a borrower promising to repay a loan under agreed-upon terms.
PROPRIETORSHIP
The most common legal form of business ownership; about 85 percent of all small businesses are proprietorships. The liability of the owner is unlimited in this form of ownership.
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