Illustrative worked example
The financing case was viable, but the original lender fit was not
An acquisition with acceptable modeled coverage still needed a lender whose appetite matched the industry, ownership experience, collateral profile, and transaction size.
Transparent methodologyPolicy as of 2026-08-15Preliminary, not a loan approval
Important: These are illustrative, anonymized worked examples created to explain the methodology. They are not actual client transactions, loan approvals, lender quotes, or predictions of outcome.
Inputs and transparent calculation
| Purchase Price | $2,800,000 |
|---|---|
| Buyer Cash | $350,000 |
| Eligible Annual Cash Flow | $530,000 |
| Seller Note | $0 |
| Annual Rate Pct | 10.5% |
| Term Years | 10 |
| Planning Dscr | 1.25x |
| Modeled senior loan | $2,450,000 |
| Modeled annual senior debt service | $396,709 |
| Modeled DSCR | 1.34x |
Financeability read
What controlled the result
The modeled structure produced approximately 1.31x DSCR on a $2.45 million senior loan. That did not make every lender a fit. The practical next step was to route the same organized package only to lenders whose stated appetite aligned with the industry, loan size, buyer experience, and collateral facts.
Next diligence steps
- Separate program eligibility from each lender's credit overlay.
- Prepare one reconciled source package before outreach.
- Target a small lender set rather than broadcasting an incomplete file.
Authored and reviewed by Emporio Partners
Policy basis: SBA SOP 50 10 version 8, effective 2025-06-01. Version 8.1 is published for 2026-10-01 and is not treated as current policy before that date.
Primary policy source
Educational planning guidance only. Emporio Partners is not a lender and does not issue approvals, pre-approvals, commitments, or guarantees. Lenders determine eligibility, eligible cash flow, structure, terms, and approval.
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