SearchFunders,

The geek in me came out this weekend and I created an Excel template for SBA Lending, specifically accounting for the Full Standby and Interest-only options to have seller notes qualify as equity. For most, like myself and until I created the model, this was a little confusing. The concept is much clearer now and why I am sharing with the community.

The model has a few features that novice Excel users should be aware. First, all figures in Blue are your inputs. I do not advise altering anything else unless you are confident in your Excel skills. Second, there is a dropdown list for the qualifying equity input. I do not advise manually inputting that cell; just use the dropdown list. Third, there are two sensitivity analysis data tables included that show the impact of the SBA Loan Rate Premium on the Debt Service Coverage Ratio (DSCR) and corresponding Cash Flows. I included these tables to visually show the impact that these premiums have on a borrower's DSCR and subsequent cash flows so that negotiations about them are straight-forward. You will need to enter the Uses amount (cell K7) MANUALLY at the top of each table AND make sure that your Iterative Calculations are activated within your Excel workbook. If you don't, or try to link the data tables to cell K7 with a formula, the data tables will provide incorrect outputs.

[For those not familiar with the Iterative Calculations settings, in Excel, go to File -> Options -> Formulas and, under the 'Calculation options' section, check 'Enable iterative calculation'.]

DISCLAIMER: I have not had the model vetted by any SBA lenders. The model was composed based upon publicly available information directly from the SBA's website, discussions with SBA lenders, and assumptions made, which are provided in the model. Like all financial models, this is subjective and reality may be slightly or significantly different. I offer this solely as a tool for the greater SearchFunder community, free of charge, and do not warranty its applicability to any prospective SBA-borrower's personal lending outcome. I encourage and welcome feedback from the members of the forum (especially the SBA lenders) to help refine and improve this simplistic model for the betterment of all interested parties.

Please feel free to use the following link to view and/or download the model:

https://netorgft7492164-my.sharepoint.com/:x:/g/personal/jason_jcgrantandassociates_com/EUf2I5if44FEkxSe46LGn4sB1M0B-0xG2iCtVOwxNEcqVA?e=J9CLu7


Happy Holidays and happy searching!