SBA Loan Calculator
Planning to buy a business with an SBA 7(a) loan? Estimate your maximum offer price based on the business's cash flow, your debt service coverage ratio (DSCR), and deal structure. Adjust loan terms, seller financing, and equity to see how each scenario affects your purchasing power.
Deal Structure
Seller financing: 20% (remainder)
Loan Terms
Implied Maximum Offer Price
$1.52M
$1,524,726
Debt Service Coverage Ratio
1.25xAcceptable — meets most SBA lender requirements.
Deal Breakdown
Equity Injection
10% of offer price
$152.5K
SBA Loan
70% · 10% · 10 yrs
$1.07M
Seller Financing
20% · 6% · 5 yrs
$304.9K
Total Annual Debt Service
$240,000
Cash Flow Available
$300,000
* This calculator provides estimates only and does not constitute financial advice. Actual loan terms, eligibility, and offer prices depend on lender requirements, business financials, and deal-specific factors. Consult a qualified SBA lender before making any acquisition decisions.
How SBA 7(a) Loans Work
for Business Acquisitions
Government-Backed
The SBA guarantees up to 85% of loans under $150K and 75% above that, making banks far more willing to lend to buyers who may not qualify for conventional financing.
Up to $5 Million
SBA 7(a) loans for acquisitions can go up to $5 million with repayment terms of 10–25 years and rates tied to prime plus a spread — typically 9–11% in the current environment.
~50% of Acquisitions
About half of all business acquisitions involve some form of SBA financing, making it the most widely used tool for buyers purchasing established businesses.
What Lenders Look At: The DSCR
DSCR (Debt Service Coverage Ratio) measures how much cash flow a business generates relative to its total debt obligations. If a business earns $300,000 in annual cash flow and total annual debt payments are $200,000, the DSCR is 1.5x — meaning the business produces $1.50 for every $1.00 it owes.
Most SBA lenders require a minimum DSCR of 1.25x. Some conservative lenders want 1.5x or higher. Use the calculator above to see how your deal's DSCR changes as you adjust the purchase price, loan terms, and seller financing.
Frequently Asked Questions
Ready to Find Your
Next Business?
Now that you know your purchasing power, browse businesses that fit your budget and get connected with our SBA lending partners.