Free, no account
Does the deal cover its own debt?
Five figures, measured against the two rules a 7(a) lender cannot waive: a 1.15:1 coverage floor and a 10% equity injection on a change of ownership. Nothing is stored and nothing is sent anywhere — the arithmetic runs in your browser.
The figures
As the seller states it. Unverified until documents say otherwise.
The 10% injection is assumed. Only dollars beyond it shrink the loan.
Your salary. It comes out before coverage is measured.
What the rules say
Clears the 1.15 floor with 0.44 of room.
- Cash available for debt service
- $220,000
- SBA loan
- $855,000
- Your cash at close
- $95,000
- Monthly payment
- $11,537
- Annual debt service
- $138,443
- Price the rules support at 1.15
- $1,312,733
Adjusted SDE — coverage reaches the floor when it falls to $249,210, from $310,000 today.
An account adds the itemised SDE build-up, document reading with citations, the diligence loop, saved structures and the draft letter of intent.
What this screen does not do
It assumes no real estate, no working capital or closing costs, no seller note, and that every dollar of stated SDE is real. Those assumptions flatter almost every listing. It does not tell you a deal is good, and it is not a loan approval. Under SBA SOP 50 10 8.1 the lender may require a Quality of Earnings report. No tool substitutes for one, because the lender mandates it.