Lending Due Diligence
SBA 7(a) Franchise Loan & DSCR Calculator
Calculate your exact monthly principal and interest debt service, 10%–20% equity down payment, and Debt Service Coverage Ratio (DSCR) for bank loan approval.
1. SBA Loan Parameters
Includes buildout, equipment, franchise fee, and initial working capital.
Standard SBA 7(a) requires 10% to 20%.
Standard 10-year term for franchise business debt.
Typical Prime (8.0%) + 2.5% to 3.0% bank spread.
Government guaranty fee rolled into loan.
2. Projected Store Cash Flow
Net operating income before debt service.
Monthly SBA Loan Debt Service
$5,738
$68,856 / Year
Required Down Payment $75,000
Bank DSCR Coverage 1.96x
✓ Excellent Bank Approval Odds
Your DSCR is well above the 1.25x minimum benchmark required by Tier-1 SBA franchise lenders.
Financing Summary
Total Financed Amount: $436,688
Total Interest Paid Over 10 Yrs: $251,872
Net Cash Flow After Debt Service: $66,144 / yr