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.
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.