The math behind our card estimates
Every listing card shows estimated cash flow after loan payments. Here is the exact structure we assume and why it meets current SBA rules.
Last reviewed June 2026 · Written against SOP 50 10 8 and current SBA notices
10%
Buyer cash down
10%
Seller note
80%
SBA 7(a) loan
10 yrs
Loan term
The structure we model
One structure, applied identically to every listing, every day:
| Buyer cash down | 10% of the estimated purchase price |
|---|---|
| Seller financing | 10% — a seller note at 7% over 10 years, payments included in debt service |
| SBA 7(a) loan | 80% over 10 years at best-case pricing — today's WSJ Prime + 2.25% (strong-file rate, under the Prime + 3% regulatory cap) |
| Purchase price | The listing's asking price, or its stated multiple × the midpoint of its public EBITDA range |
| Cash flow | The midpoint of the listing's public EBITDA / owner-earnings range |
| The card number | Cash flow minus one full year of payments on BOTH loans |
Does this meet SBA requirements?
Yes— SOP 50 10 8 requires a 10% equity injection of total project costs for a complete change of ownership, and the buyer's 10% cash covers it alone. The seller note stays out of the injection math, so the full-standby-for-life-of-loan rule never applies. The 10-year term is the standard 7(a) acquisition maturity, and the modeled rate sits under the Prime + 3% cap.
A screening number should show its work. Ours does.
Where this estimate stops
This number screens deals. Real underwriting moves with the negotiated price, verified financials (lenders check the seller's IRS transcripts), working-capital needs, your actual rate, and the SBA guaranty fee. For the detailed version, run the full calculator or the deal's own pre-qualification worksheet.
Where the rate comes from
We verify WSJ Prime daily against multiple published sources and model best-case pricing at Prime + 2.25%, the level strong files reach under the cap. See today's 7(a) rate for the full table by loan size and credit band.
Free · No obligation · Usually same-day
Stop reading. Ask a lender.
Twenty minutes with an SBA specialist answers what twenty articles can't: your number, on yourtimeline. We'll connect you with a 7(a) specialist who works acquisition deals all day — they'll tell you what you can borrow before you fall in love with a listing.
Sellers answer verified buyers first
Verification takes minutes, costs nothing, and moves you to the front of every advisor's queue — they see proof of funds before you even say hello.
Become a verified buyerFirst look at every new listing
The gems never sit on the open market. Premium members see each new listing before the crowd — by the time everyone else is browsing, you've already made the call.
$29/mo · instant alerts · side-by-side deal compare · priority with advisors
Upgrade to Premium