Calculators

Educational arithmetic for a buyer or a seller. The 7(a) rules themselves are on sba.gov. Equity injection is in the current SOP 50 10, which these fields do not apply for you.

SBA 7(a) structure

Planning arithmetic. Rates and the down payment are assumptions you type in. A coverage ratio under 1.25 is flagged because many lenders screen near there. It is not an SBA rule.

Purchase price

Cash flow for debt

Buyer cash, percent

Seller note, percent

SBA rate, percent

SBA term, years

Seller note rate, percent

Seller note term, years

Buyer cash: $100,000
Seller note: $100,000
SBA loan: $800,000
SBA payment / month: $10,795
Annual debt service: $152,737
DSCR: 1.44

The down-payment percent is a planning assumption you can edit. Equity-injection rules live in the current SBA SOP 50 10, which this calculator does not apply.
Rates are inputs, not a lender quote. 7(a) pricing moves with the prime rate and the lender's spread.
A debt-service coverage ratio under 1.25 is flagged because many lenders use a screen in that neighborhood. It is not an SBA rule and not a credit decision.
Guarantee fees, closing costs, working capital, and a separate real-estate loan are left out.

SDE normalization

The sum of the lines you believe. A number that repeats every year is probably not an add-back. This is not a quality-of-earnings review.

Reported profit

Owner compensation added back

Personal expenses added back

One-time costs added back

This one-time line actually repeats

Replacement manager wage (subtracted)

$148,000

Normalized SDE from these lines.

A zero-rate illustration of debt on this SDE is not a loan. Monthly principal-only on $148,000 over 10 years would be $1,233 if someone lent the whole earnings figure, which they will not.