#SBA LOAN CALCULATOR FREE#

A history free from recent bankruptcies, foreclosures, or tax liens.

A good credit score - preferably above 680.

In addition to the eligibility requirements, there are a few additional qualities which can increase your likelihood of SBA 7(a) loan approval:.

If there are any blemishes on your credit reports, be prepared to explain them to the lender in detail. You are more likely to be approved if your credit report shows that you have a history of meeting your credit obligations as agreed.

The lender will check your personal and business credit histories.

For an established business, the lender is looking for a maximum of $4 of debt to $1 of net worth for the business. For a startup, the lender will want to see a minimum of $1 of the owner’s money invested in the business for $3 of loan funding.

Business owners need to invest a significant amount of money in their own company before they can seek outside funding.

If you are operating a start-up, the lender will have questions about your prior business experience and education to determine that you have the know-how to successfully operate the type of business you wish to start.

The lender will ask to see sales records for prior years and cash flow projections.

You must be able to show that you can pay your business expenses, a draw for yourself and the loan payment the income generated by the business.

When applying for an SBA 7(a) loan, the lender will evaluate your creditworthiness based on a number of factors: However, this requires great credit, strong financials, and a high DSCR, among other factors. Some lenders may even offer eligible borrowers 100% financing for commercial real estate with the 7(a) loan. While DSCR is important for all kinds of SBA 7(a) loans, it’s particularly important for SBA 7(a) loans for commercial real estate. This can be done by retaining earnings, issuing new stock, or selling assets.ĭSCR is Especially Important for Commercial Real Estate Loans Increase equity: A company can improve its DSCR by increasing the amount of equity it has relative to debt. Increase the time period over which debt is repaid: Extending the repayment period will reduce the amount of money needed to service the debt each month, improving the DSCR. Refinance debt: If the company is unable to pay off its existing debt, it may be able to refinance it at a lower interest rate, which will reduce the amount of money needed to service the debt and improve the DSCR. Pay down debt: Paying off existing debt will reduce the amount of debt the company has to service and improve the DSCR. Reduce expenses: A company can look for ways to cut costs, such as negotiating lower prices for supplies, reducing overhead, or streamlining operations. Increase revenues: This can be done by expanding the customer base, increasing prices, or introducing new products or services.

Sba loan calculator