Sizing an SBA Loan to the Cash Flow

A deal may look affordable based on the broker’s numbers — but the lender’s math can tell a very different story.

Join top SBA loan broker Heather Endresen for a practical deep dive into how banks size an SBA acquisition loan based on the cash flow they are actually willing to accept.

Using one fictional deal from start to finish, Heather covers:

• How to rebuild adjusted EBITDA from the business’s tax return
• Which add-backs lenders typically accept, question, or reject
• Why bank-acceptable EBITDA is often lower than the number presented in the CIM
• How lenders use cash flow and DSCR to determine the maximum SBA loan
• How seller notes, working capital, fees, and equity fill the remaining financing gap
• What the deal would need to produce for the buyer to achieve a 30% annual return on equity