SBA 7(a) Loan Calculator for Buying a Business
Work out your monthly SBA payment, the cash you'll need at closing, and whether the deal covers its debt, before you write an offer. Built for service acquisitions: HVAC, plumbing, electrical, landscaping, cleaning, and the rest.
Deal inputs
Your results
Buyer cash
$120,000
Seller note
$120,000
SBA 7(a) loan
$960,000
DSCR of 1.19x is below the 1.25x SBA threshold. Raise the down payment, lower the price, or extend amortization.
See real deals matching your buy-boxHow SBA 7(a) financing works for acquisitions
For most people buying a service business in the US, the SBA 7(a) program is the path. It funds up to $5M, stretches repayment over ten years (twenty-five if real estate is in the deal), and asks the buyer to put in at least 10% equity, up to half of which a seller can supply through a note held on full standby.
What a lender is checking
- Coverage of at least 1.25x after a fair-market salary for the buyer is taken out of earnings.
- Three years of business returns plus current interim financials.
- The buyer's credit, relevant experience, and cash on hand. Scores around 680 and up are typical.
- A clean license handoff, which matters most in HVAC, plumbing, and electrical.
Typical deal structures
A common stack is 10% buyer cash, a 10% standby seller note, and 80% from the SBA loan. On stronger files, lenders will go to 5% cash plus a 5% seller note. Either way, always fold the seller note into your coverage math. It's the line buyers most often leave out and then regret.