sa-tine

joined 11 months ago
[–] sa-tine@alien.top 1 points 11 months ago (1 children)

Depends on the industry, but expect the lender to look for a debt service coverage ratio of 1.5 - 1.75 to secure a $5M SBA 7a. This means that the cashflow (including OP's salary) needs to be 1.5-1.7x the annual debt service amount. If your ratio is less than 1.5, you'll have a hard time securing a multi-million dollar 7a loan. Debt-service ratio is the most important metric in securing bank financing, FYI. Also, 15% down may be a more realistic expectation than 10% unless OP has a strong narrative. I'm in the same boat as OP trying to do the same thing now. DM me any specific questions.