Tools / Deal analyzer
Model SDE, seller note, equity injection, and DSCR under current SOP rules. Six numbers decide the answer; the rest is here when you want it.
The price and the earnings underneath it. These two move the answer more than anything else on the page.
Everything beyond the price that still has to be funded at close. All three feed the total above, and so the equity you must inject.
The bank loan, the seller's paper, and your own check. Sources have to equal uses before anything else matters.
The terms on the paper above: what the seller note costs, how long it runs, and what counts toward your injection.
Cash flow available for debt service, divided by what the structure owes in Year 1. This is the number that gets the loan approved.
Coverage falls to 1.90× from year 2, when the seller note starts amortizing. SBA's floor is 1.15× through Sep 30, 2026, and 1.25× for acquisitions from Oct 1, 2026, measured on historical numbers. Max debt service this cash flow supports at that floor: $666k/yr.
How the business actually runs after close. Each one moves the cash flow the bank counts, and so the coverage ratio above.
Every loan in the structure with its balance, rate, and payment.
| Instrument | Balance | Rate | Monthly | Annual |
|---|---|---|---|---|
| ■ SBA 7(a) · 10 yr | $2.60M | 9.00% | $32,936 | $395k |
| ■ Seller note · IO yrs 1 to 1 | $300k | 8.00% | $2,000 | $24k |
| ■ Seller note · amortizing after | $3,640 | $44k | ||
| ■ Standby note · full standby | $150k | n/a | $0 | $0 |
| Total · Year 1 | $34,936 | $419k |
SBA flexes to fill the gap; every other lever held as set.
| SDE basis | $2.55M | $2.75M | $2.90M | $3.10M | $3.25M | $3.45M |
|---|---|---|---|---|---|---|
| 85% · $850k | 1.96 | 1.80 | 1.69 | 1.57 | 1.49 | 1.39 |
| 95% · $950k | 2.25 | 2.06 | 1.94 | 1.80 | 1.71 | 1.60 |
| Current · $1.00M | 2.39 | 2.19 | 2.07 | 1.92 | 1.82 | 1.70 |
| 110% · $1.10M | 2.68 | 2.46 | 2.31 | 2.15 | 2.04 | 1.91 |
The same structure carried forward: cash you keep after every loan payment and estimated taxes, and the debt you pay down along the way.
Year 1 starts at the $1.00M SDE basis set in step 1, so the plan can never run on different earnings than the deal above it. These four levers carry it forward.