SBA Financing Questions

April 02, 2024

by a lender from Ohio State University in Columbus, OH, USA

If you have questions about SBA financing, feel free to shoot me a message or leave them in a comment below, and I’ll be happy to answer them. I am also happy to share my personal contact info for anyone in the process of acquiring a business who might have questions along the way. There’s been a lot of beneficial changes (for buyers) to SBA policy over the past six months and I’d love to share them with you. You can also email me if you’d like at:

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Reply by an investor
from Ivey Business School at Western University in Boca Raton, FL, USA

Thanks for your generous offer.
(1) When sizing the SBA loan, do you require 2022 income to have the same debt service coverage ratio as 2023 income, or do you factor in lower coverage for each prior year? (2) For seller notes on 2-year standby, what is the fastest debt repayment allowed (the most seller-friendly terms allowed) after Year 2, or does the debt then need to amortize over the remaining 8 years and not sooner?
You can also reach me at redacted if you prefer. Thanks, Jeff

Reply by a searcher
from Thomas A. Edison State College in Tampa, Florida, USA

Here's a question...how much does the SBA look at my present DTI. After I finish selling some real estate, my current DTI may be around 50% or so, due to four single family home rentals--the portfolio cashflows, but when you apply the 75% of gross rental income rule, they are slightly negative, which drops my DTI.

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