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SBA acquisition loan calculator
Model an initial business acquisition without real estate: equity injection, loan payment, estimated coverage and a cash-flow-supported loan limit.
How it works
Total project cost = purchase price + closing costs, fees and financed working capital.
Modeled injection = your chosen percentage of project cost, at least 10%. Under SOP 50 10 8.1, Appendix 15, an initial acquisition needs at least 10%. This model counts a qualifying standby seller note up to 5% of project cost, half that minimum, assuming no other limited equity sources. The note receives no payments during the SBA loan term. Additional seller financing needs separate lender review.
Loan = total project cost − injection. The payment assumes monthly amortization at a fixed rate for the term. Real 7(a) loans are usually variable, so test a higher rate too.
Coverage = (SDE − owner salary − capex reserve) ÷ annual loan payment. Supportable loan is the largest loan whose payment keeps coverage at your target.
This tool uses a minimum target of 1.25×, a maximum 10-year term and a $5 million loan ceiling. It does not model real estate, business expansions, other existing debt, variable-rate resets or a lender's full EBITDA-based coverage calculation. Its price limit assumes you can fund the chosen injection at that price; it is not a cash-budget limit. With no SBA loan, coverage and the debt-derived price limit do not apply.
This is an estimate for planning. Lenders apply their own underwriting, fees and rules. Read How SBA 7(a) loans work for acquisitions.