Step 1 — Seller's Discretionary Earnings (SDE)
The total annual cash flow available to an owner-operator — net income plus addbacks such as owner salary, depreciation, and one-time expenses. This is the figure a lender underwrites against.
$
Owner Compensation Adjustment
For owner-operated businesses, SBA lenders require that a reasonable management salary be deducted from SDE before calculating the DSCR. This reflects the cost of replacing the owner's labor — the remaining cash flow must cover both the loan payments and the buyer's compensation.
$
Typical lender benchmark: 0,000 – 00,000
Step 2 — Deal Parameters
$
Asking or negotiated price
%
SBA 7(a) rate is variable — check current WSJ Prime Rate + spread with your lender
%
SBA minimum is 10% of total project cost
mo
10 years is standard for SBA 7(a)
$
Required by lender at closing
$
Legal, lender, title, and appraisal fees
Seller Financing (Optional)
$
Enter 0 if not applicable
%
mo
DSCR
—
Enter SDE and purchase price to calculate
This tool provides estimates for general informational purposes only and does not constitute financial, lending, or legal advice.
Actual SBA loan eligibility, terms, and approval are determined by lenders and subject to SBA program guidelines.
Actual SBA loan eligibility, terms, and approval are determined by lenders and subject to SBA program guidelines.
Speak with an Advisor
Amerivest Group has guided buyers and sellers through hundreds of SBA-financed transactions across Florida since 1983. Let us help you evaluate your next step.