How to buy a $5,000,000 business in 2024 using an SBA loan.

SBA Banks require a minimum DSCR of 1.25 to greenlight your loan.

What is the Debt Service Coverage Ratio (DSCR)? DSCR = Net Operating Income / Annual Debt Service Payments

For a $5 million loan: ➡ Annual Debt Service Payments (Principal & interest) = approximately $800,000 annually. ➡ With a minimum DSCR of 1.25, your business needs a Net Operating Income of $1 million to qualify.

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