Can the business carry the loan? Payment and coverage in seconds.
Enter the loan amount, the rate and term from a lender, and your business cash flow to see the monthly payment, your debt service coverage ratio, and the largest loan that cash flow supports. Nothing here is a Globus quote.
Monthly payment and debt service coverage
For business uses: acquisitions and partner buyouts, expansion, equipment, working capital and refinancing business debt. The starting values are examples only; replace them with your numbers and the terms from a lender.
Try a few rates and terms to see how much the payment and coverage move. Lenders set actual rates, fees, terms, collateral and coverage requirements at underwriting, subject to SBA eligibility review.
Business brokers and CPAs
Client buying a business or refinancing business debt?
They can run their numbers here and request options on their own at /go/sba-apply. We share each request with SBA-participating lenders that fit the deal, and the lender makes every credit decision.
SBA 7(a) loan questions
How is an SBA 7(a) loan payment calculated?
Most SBA 7(a) loans are fully amortizing: each monthly payment covers the interest due plus enough principal to pay the loan off by maturity. This calculator uses the standard amortization formula with the rate and term you enter. Many 7(a) loans carry a variable rate tied to the prime rate, so the actual payment can change when the rate adjusts; the calculator assumes the rate you enter holds for the whole term.
What is debt service coverage, and why does the lender care?
The debt service coverage ratio (DSCR) is the cash flow the business has available to pay debt, divided by its total annual debt payments including the new loan. A ratio of 1.25x means $1.25 of cash flow for every $1 of loan payments. Lenders use it to judge whether the business can carry the loan out of operations. Each lender sets its own minimum coverage within SBA rules, so ask the lender what it needs for your deal.
Which cash flow number should I enter?
Lenders usually start from net income on the business tax returns and add back interest, depreciation and amortization, plus certain non-recurring or owner-specific expenses they accept. For a business acquisition they look at the seller’s historical cash flow, adjusted for the new owner’s salary and the new debt. If you work with a CPA, use the figure they would put in front of a lender.
How long are SBA 7(a) loan terms?
The lender sets the maturity based on how the money will be used. Working capital, equipment and business acquisitions are generally financed over shorter terms than loans that include commercial real estate, which can run much longer. The term choices here are examples; confirm the maturity your lender will offer for your uses.
Does Globus Capital Advisors make SBA loans?
No. Globus Capital Advisors refers businesses to SBA-participating lenders. SBA loans are made by lenders and are subject to lender and SBA eligibility review. Globus Capital Advisors is not affiliated with, endorsed by or acting for the U.S. Small Business Administration. Any fee paid to Globus on an SBA loan is disclosed on SBA Form 159.
Related: SBA 7(a) loans, franchise financing, working capital lines, the equipment loan and lease payment calculator and the invoice factoring cost calculator.
Craig Kaminski, NMLS 1417248. Globus Capital Advisors is not a lender or a licensed entity. Business-purpose commercial financing only; subject to lender underwriting; not a commitment to lend. Globus Capital Advisors refers businesses to SBA-participating lenders. SBA loans are made by lenders and are subject to lender and SBA eligibility review. Globus Capital Advisors is not affiliated with, endorsed by or acting for the U.S. Small Business Administration. Any fee paid to Globus on an SBA loan is disclosed on SBA Form 159. Globus Capital Advisors, LLC, Office: 5335 Wisconsin Ave NW, Suite 440, Washington, DC 20015. Not available in California, Connecticut, Missouri, Nevada, North Dakota, Texas, Vermont or Virginia. No upfront fees are charged to request financing. Calculator results are illustrative math based on the inputs you enter; nothing on this page is a rate or term quote, and actual rates, fees, terms and eligibility are set by each lender. Not tax, legal or accounting advice.