SBA Loan DSCR Calculator

Test any purchase price against SBA debt financing reality

🎥 WATCH THIS 15 MINUTE VIDEO FIRST: Don't Let the Math Fool You

Before you rely on your score, you must understand the traps lenders set. This quick video exposes the three biggest mistakes first-time buyers make that cause deals to fail the bank's underwriting test.

🚀 The Next Step: Apply for Your Deal Review

The calculator gives you a score. The DealFlowSystem gives you the solution.

If your DSCR score is too low, if your SDE is inflated, or if you need to structure a seller note, you need a blueprint. Don't risk your capital on a hunch. Get expert guidance to build a bulletproof financing plan.

📚 The Fundability Reality Check: Advanced Underwriting Notes

The score you generated above is just the starting point. The biggest difference between a failed deal and a closed deal lies in these advanced underwriting details:

A. The Critical Truth: Moving from SDE to Adjusted Cash Flow

Lenders look at Adjusted Cash Flow—the amount available after you run the business. If you fail to account for these mandatory post-close expenses, your deal will look fundable in the calculator but will be rejected by the bank:

Buyer Salary/Compensation: The cost of hiring yourself or a manager must be deducted.
CapEx (Capital Expenditures): Necessary, recurring replacement of equipment must be subtracted.
Rent/Lease Adjustments: The new, market-rate lease payment you will sign must be factored in.

B. The Silent Killers: Debt Structure & DSCR Margin

1.25x is Too Tight: While 1.25x is the minimum standard, banks typically prefer a DSCR of 1.35x or higher to feel comfortable. If your deal is testing at 1.25x, you are in the danger zone.
Seller Notes & Subordination: For a Seller Note to not be counted in the Annual Debt Service, the note must be fully subordinated to the bank's loan. This is a critical legal and financial negotiation point that determines fundability.

Final Takeaway: The calculator confirms the math. Our coaching helps you master the structure and negotiation required to pass the bank's final test.