Hi all,

I'm hoping you could help me with some modeling questions. Apologize in advance if these are exceedingly obvious. If anyone has a model that would help me understand the below, would greatly appreciate it.

1. If an SBA 7(a) loan has a 10-year amortization, will there be a mandatory 120-month schedule where interest gradually decreases as a % of payment, OR will there be a mandatory minimum principal repayment of 10% each year (plus interest) and anything on top of that is a voluntary principal repayment? (I.e., do we need to pay more than 10% of principal each individual year?)
2. When we talk about investor IRRs, are we typically talking pre-tax or after-tax? I have always assumed pre-tax.
3. (Assuming LLC) When we model income taxes into free cash flow, will the amount calculated as taxes ultimately be paid out as a distribution to investors (based on ownership share)? Assume this is required so that they can use this cash flow to cover their income taxes.
4. If the calculated income taxes are paid out as a distribution to preferred investors who have a portion of common equity (so, for example, if the preferred investors owned 30% of common equity and therefore received 30% of the tax distribution), would that distribution count towards their preferred dividend? I assume not, because this distribution is related to their common equity ownership and not their preferred equity.
5. In a model, do you typically subtract bank and seller principal before calculating what is left (if anything) for a preferred dividend? I have seen models where preferred dividend was pulled out before debt principal, which made no sense to me since it's possible there's nothing left for a preferred dividend after paying debt principal.

Thank you again!