{
  "schemaVersion": 1,
  "asOf": "2026-08-15",
  "name": "Deal and Listing Financeability Methodology for SBA Acquisitions",
  "description": "How Emporio evaluates target-company cash flow, price, working capital, seller financing, documentation, and modeled debt service.",
  "directAnswer": "Deal financeability asks whether the target's supportable historical cash flow and transaction facts can carry the proposed capital stack. A profitable company can still be unfinanceable at the asking price, with the proposed working capital, or for the proposed buyer.",
  "sections": [
    {
      "heading": "Deal inputs",
      "bullets": [
        "Three years of business tax returns where available.",
        "Current interim profit-and-loss statement and balance sheet.",
        "Reconciliation of reported earnings, SDE or EBITDA, and defensible add-backs.",
        "Purchase price, allocation, working capital, closing costs, and total project cost.",
        "Debt schedule, leases, contingent liabilities, and required capital expenditures.",
        "Seller-note amount, equity treatment, standby, subordination, and payment terms.",
        "Customer concentration, recurring revenue, industry, occupancy, and transition risks."
      ]
    },
    {
      "heading": "Cash-flow model",
      "paragraphs": [
        "Modeled DSCR equals eligible annual cash flow divided by total annual debt service included by the lender. Emporio displays the rate, term, loan amount, seller-debt treatment, and planning DSCR used. A 1.25x planning assumption is a screen, not a universal SBA approval threshold."
      ]
    },
    {
      "heading": "Listing-level conclusion",
      "paragraphs": [
        "A listing can be described as likely financeable only at a stated price range and assumptions. It must never be marketed as SBA approved. Buyer approval remains separate."
      ]
    }
  ],
  "policy": {
    "currentVersion": "8",
    "effectiveFrom": "2025-06-01",
    "source": "https://www.sba.gov/document/sop-50-10-lender-development-company-loan-programs",
    "futurePublishedVersion": "8.1",
    "futureEffectiveFrom": "2026-10-01"
  },
  "limitations": [
    "issue loan approvals, pre-approvals, commitments, or guarantees",
    "replace lender underwriting, SBA eligibility review, legal advice, tax advice, or accounting advice",
    "promise that a transaction will close or that a lender will offer specific terms"
  ],
  "canonicalUrl": "https://www.emporiopartners.com/methodology/deal-financeability/",
  "continuationUrl": "/financeability-check/"
}