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What size business can you afford?

The standard SBA 7(a) acquisition math, run on your numbers: purchase price, loan size, monthly debt service, and the SDE a business needs to carry the deal and pay you.

Purchase price you could support

$1,500,000

Assumes a 10% equity injection.

SBA loan amount

$1,350,000

10-year term at 9%

Monthly payment

$17,101

$205,215 per year in debt service

SDE the business needs

$356,518

Covers your $100,000 salary plus debt service at 1.25× coverage — the screen lenders commonly apply.

Assumptions

  • Rates default to today's typical pricing — about Prime + 2.25% (9% with prime at 6.75%); well-qualified borrowers see roughly 8.59.25%.
  • 10-year term (standard for business-only acquisitions), 10% equity injection, single 7(a) loan up to $5,000,000.
  • Seller notes counted toward the injection are modeled on full standby, per the reported mid-2025 rule changes.
  • The SDE figure covers your salary plus debt service at 1.25× — a common lender screen, not a regulation. Working capital, closing costs, and taxes are on top.

Educational, not financing advice — every lender structures deals differently, so confirm numbers on your actual deal. Figures verified Jul 10, 2026; see the SBA loan statistics page for sources.

Where to go from a number

Stage 3 of the roadmap covers funding the search, stage 7 covers the lending gauntlet — and the directory lists acquisition lenders and loan brokers verified against their own pages.