Eligibility + use of proceeds
Business activity, ownership, size, location, and what every loan dollar will fund.
// SBA 7(a) DEAL PREP
Know if the deal pencils.
Run the first credit screen before the lender does: eligibility, sources and uses, debt service, guarantor strength, and file readiness.
Free deal checkNo credit pullNo lead form
BUSINESS ACQUISITIONEXPANSIONPARTNER BUYOUTOWNER-OCCUPIED REAL ESTATE
INITIAL CREDIT SCREENSAMPLE // NOT A TERM SHEET
REQUEST$1,250,000 · BUSINESS ACQUISITION · 10 YR
72/100
Workable. Clear the open items.
The structure needs two fixes before lender review.
Eligibility22 / 25
Cash flow24 / 30
Guarantor14 / 20
Credit file12 / 25
Pro forma DSCR is 1.18×
Stress the deal at a higher rate and lower add-backs.
Seller-note terms are open
Document standby, subordination, and payment terms.
METHODOLOGY v1.0 · POLICY REVIEWED AUG. 17, 2026
INDEPENDENT TOOLNot a lender. Not a broker. Not affiliated with the SBA.
No lender referral. No document upload. No credit pull. Your answers stay in this browser unless you choose private-link save.
See our operating standards →$5MMaximum standard 7(a) loan
10 YRSTypical maximum for acquisition and working capital
25 YRSMaximum when real estate supports the term
Program terms are negotiated with the lender and subject to SBA requirements ↗
01 Initial credit read
02 Debt-service model
03 Sources-and-uses gaps
04 Lender file checklist
SHOW YOUR WORK
A complete sample deal, inputs first.
BorrowerDesk does not hide the assumptions behind a verdict. Here is one illustrative business-acquisition screen from sources and uses through debt coverage.
SAMPLE // $1.5M BUSINESS ACQUISITIONILLUSTRATIVE ONLY
Sources + uses
- Total project cost
- $1,500,000
- SBA loan request
- $1,250,000
- Borrower cash
- $150,000
- Seller note
- $100,000
- Borrower cash / project cost
- 10.0%
Repayment test
- Test rate / term
- 10.5% / 10 years
- Cash flow for debt service
- $285,000
- Existing annual debt
- $15,000
- Modeled new annual debt
- $202,400
- Planning DSCR
- 1.31×
Initial read
- Repayment cushion clears this planning screen.
- Borrower cash equals 10% of project cost.
- Document seller-note treatment and terms.
- Confirm lease and 2 remaining file items.
METHODOLOGY v1.0 · POLICY REVIEWED AUG. 17, 2026See formulas and scoring →
HOW CREDIT SEES IT
Four parts. One credit decision.
A lender will separate the story from the support. The deal has to clear program rules, repay the debt, survive the structure, and arrive with a file that ties out.
Historical + projected cash flow
Tax returns, interim results, add-backs, global cash flow, and pro forma debt service.
Guarantor strength
Credit history, management experience, cash injection, and post-close liquidity.
Structure + documentation
Sources and uses, seller debt, collateral, purchase documents, projections, and required forms.
BEFORE IT HITS A LENDER'S DESK1 2 3
Structure it. Stress it. Support it.
Lay out sources and uses
Loan request, total project cost, borrower cash, seller debt, and the exact use of proceeds.
Run the debt service
Model payment and DSCR, then test the deal with less cash flow and a higher rate.
Clear the open items
Resolve eligibility, guarantor, structure, and documentation issues before lender outreach.
OPEN CREDIT ITEMS
Find the questions before credit asks them.
BorrowerDesk turns the score into an issue list: what is supported, what is missing, and what needs a lender conversation.
INITIAL CREDIT SCREEN3 OPEN ITEMS
Source of injection is not documented
Show where the borrower cash is coming from and keep a clean transaction trail.
Seller-note structure is incomplete
Standby, subordination, rate, and payment terms are not yet in the file.
Historical financials tie out
Federal returns, interim P&L, and balance sheet tell the same story.
YOUR DEAL STAYS YOURS
No lead form. No lender handoff. No document upload.
Your answers stay in this browser unless you choose private-link saving. BorrowerDesk does not sell your deal to brokers or lenders.
BORROWER FIELD NOTES
Plain answers before lender outreach.
Use the guides to understand the calculations, assemble the core file, and separate general SBA rules from lender-specific credit policy.
What should you check before approaching an SBA lender?
Five areas that determine whether the deal is ready for a first lender conversation.
Read the readiness guide →How do you calculate DSCR for an SBA loan?
The formula, a worked example, and the reasons a lender may calculate it differently.
See the DSCR guide →What belongs in an SBA business acquisition package?
A borrower-side checklist for the structure, repayment case, guarantor, and transaction documents.
Open the checklist →BEFORE YOU START
What this is and is not.
BorrowerDesk helps you prepare the deal for lender review. It is not a marketplace, preapproval, or application.
Is this an SBA preapproval?
No. It is an initial credit screen based on your inputs. Only a participating lender can underwrite and approve the loan.
Does this pull my credit?
No. You select an approximate credit band. There is no Social Security number, bureau connection, or hard inquiry.
Do I upload financials?
No. The check only asks which file items are ready. Tax returns, statements, and deal documents stay with you.
Does my information go to a lender?
No. There is no lender handoff, broker lead form, or paid placement in the result.
BEFORE LENDER OUTREACH
Underwrite it before they do.
Know the structure, defend the cash flow, and walk in with a file that ties out.
SBA 7(a) · No credit pull · No lead form