Business Tools

SBA 7(a) Loan Calculator for Buying a Business

Structure an acquisition the way a lender will read it: equity injection, seller note, monthly payment, debt service coverage, and what is actually left for you after the note and a salary.

SBA 7(a) Walkthrough

See How an SBA-Financed Business Acquisition Can Work.

Use a real acquisition example to see how purchase price, equity injection, seller financing, working capital, debt service, and owner compensation affect the economics of buying a business.

The purchase price is only part of the deal.

A business may produce enough earnings to support an acquisition on paper, but the financing structure determines how much cash is actually left after debt service, working capital needs, and owner compensation. Use the calculator to model the transaction before committing to a structure.

Don't forget working capital.

A buyer needs enough capital to keep the business operating after closing. Payroll, receivables, inventory, seasonality, and payment timing can create significant cash needs even when the acquired business is profitable. Model it against the actual business rather than a rule of thumb.

What seller financing means.

Seller financing means the seller agrees to receive part of the purchase price over time rather than entirely at closing. How that note is structured may affect monthly debt service and the cash left in the business after the deal.

01The deal
02Financing terms
03Cash flow
04Results

IThe deal

What are you buying, and what does it cost to close?

SBA 7(a) acquisition loans can finance more than the purchase price. Working capital and closing costs rolled into the loan become part of the project cost the equity injection is calculated against.

Purchase price$The agreed price for the business, including any inventory and equipment in the deal.

Working capital financed$Cash for payroll, receivables and the first ninety days.Closing costs$Legal, business valuation, lender packaging and title costs.

This calculator is for educational and planning purposes only. Actual SBA loan eligibility, structure, rates, equity requirements, seller-note treatment, underwriting standards, fees, and approval are determined by participating lenders and current SBA rules. IK Systems is not a lender or loan broker.