Deal financing

SBA deal-financing calculator

Most Main Street deals close with an SBA 7(a) loan. Model the capital stack, monthly payment and whether the cash flow covers the debt (DSCR). Detail in the protocol (Day 13).

Purchase price (USD) Working capital + fees financed (USD) Often $25–100K added to the loan on real deals SDE / cash flow (USD) Buyer salary need (USD/yr) Buyer down payment

10%

Seller note (% of price)

10%

Note on full standby ≥ 24 months — no payments; can count toward equity SBA interest rate

11%

Term (years)

10y

Capital stack derived — formula shown

SBA loan

SBA payment /mo

Seller-note payment /mo

Total annual debt service

Debt-service coverage (DSCR)—

0.0×

Lenders want ≥ 1.25×. = (SDE − your salary) ÷ total annual debt service (SBA + amortizing seller note).

Owner cash flow after debt & salary$0

Cash to close*$0

*Cash to close ≈ down payment + ~2–4% guaranty/closing fees if not financed (the SBA guaranty fee has been $0 on loans ≤ $1M in recent years, and fees are often rolled into the loan). Equity rule: a seller note can cover up to half of the required 10% injection, and only if it is on full standby for ≥ 24 months (current SOP). Lenders also underwrite your global personal cash flow. Estimates — confirm with an SBA lender. Documents: Seller Note (.docx) · Buyer PFS for the loan package (.docx).