SBA Resources · Updated July 2026
SBA Loan Calculator: Payment + Global DSCR
Estimate your monthly payment, then run the same global debt-service check your lender will.
Global DSCR is the ratio SBA lenders use to test whether the business and the owner's household together cover all debt: business cash flow plus household income, minus living expenses, divided by combined business and personal debt service. On a global basis SOP 50 10 8 requires only 1:1 (break-even); most lenders want 1.25× after a 10% cash-flow stress test.
Written by Thomas Hartwell, author of the FUNDED series of industry-specific SBA lending guides.
Step 1: Estimate Your Monthly Payment
SBA 7(a) loans fully amortize, no balloons. Your payment feeds directly into the DSCR check below.
SBA 7(a) rates are typically Prime + 2.25% to 2.75% (WSJ Prime 6.75% as of July 2026)
Step 2: Run Your Global DSCR Self-Check
Lenders don't underwrite the business alone, they underwrite you and the business together. Global DSCR = (business cash flow + household income − living expenses) ÷ (business + personal debt service). Run it yourself before a lender does.
EBITDA or seller's discretionary earnings before your own pay. If your number already deducts your salary, add that salary to household income below instead.
Spouse W-2, rental income, other verifiable income.
Everything except debt payments: housing costs not in a loan, food, insurance, childcare, taxes.
Lenders run global cash flow across every business you own or control (you disclose them all on SBA Form 1919). Combined EBITDA of your other businesses; enter a negative number if any lose money. Add their loan payments to business debt service below. Leave 0 if none.
The new SBA payment (use Step 1's Annual Debt Service) plus any other business loans that survive closing, including your affiliates' debt payments.
Mortgage, autos, student loans, credit card minimums, what your credit report will show the lender.
How Lenders Calculate Global DSCR
Underwriters combine the business's cash flow with the owner's full household picture, then divide by every debt payment, business and personal. A deal passes when the combined ratio clears the lender's threshold both as-projected and after a 10% cash-flow haircut.
- Start with business cash flow available for debt service: EBITDA or SDE with documented add-backs (owner salary being replaced, one-time expenses, interest on debt being refinanced).
- Add verifiable household income, spouse wages, rental income, other recurring income from the personal financial statement and tax returns.
- Add the net cash flow of any other business you own, the SBA's "global" analysis spans every business you own or control (all disclosed on SBA Form 1919). A profitable affiliate helps; one that loses money is counted as a drain against you.
- Subtract household living expenses, what the household actually spends to live, excluding debt payments (those go in the denominator).
- Total all debt service, the proposed SBA payment, any surviving business debt, your other businesses' loan payments, plus personal mortgage, autos, student loans, and card minimums from the credit report.
- Divide and compare, (steps 1+2−3) ÷ step 4. On a global basis the SOP 50 10 8 floor is 1:1; most lenders underwrite to 1.25×.
- Stress it, re-run with cash flow reduced 10%. If the stressed ratio falls below threshold, expect a smaller loan, more injection, or a decline.
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DSCR Thresholds Lenders Use
On a global basis SOP 50 10 8 sets the SBA's minimum at just 1:1 (the 1.15× business floor applies to loans over $350k, and 1.10× is the floor for 7(a) Small Loans of $350k or less). Most lenders underwrite to 1.25× as their internal credit standard, and 1.50× reads as strong.
| DSCR | What it means to a lender |
|---|---|
| Below 1:1 | Below the SOP 50 10 8 global minimum, decline risk without more injection or a smaller loan |
| 1:1 – 1.24× | Clears the SBA 1:1 global floor but under most lenders' internal 1.25× standard, expect scrutiny |
| 1.25× – 1.49× | Bankable, clears the standard threshold most SBA lenders underwrite to |
| 1.50× and up | Strong, coverage survives the 10% stress test with room, and supports rate negotiation |
Current SBA Interest Rates
| Program | Rate Structure | Typical Range |
|---|---|---|
| SBA 7(a) | Variable (Prime + spread) | Prime + 2.25% to 2.75% |
| SBA 504 (Bank) | Negotiated with bank | Varies by lender |
| SBA 504 (CDC) | Fixed (tied to Treasury) | ~6% (as of 2026) |
* Rates move with the Prime Rate and market conditions. WSJ Prime is 6.75% as of July 2026.
DSCR is one gate. The kit runs all of them.
Found a deal? The "Will the SBA Fund This Deal?" kit runs your actual numbers the way an underwriter will, your walk-away price, equity injection, collateral, global DSCR, and the red flags that kill applications, verified against the current SOP 50 10 8.
See the Kit →Related Resources
Get Industry-Specific Guidance
The FUNDED series provides detailed financing guidance for restaurants, hotels, franchises, dental and veterinary practices.
Browse the FUNDED SeriesThe rest of the free SBA deal tools
All free, no email required to run them, and every rule is verified against the current SBA SOP 50 10 8.
Global DSCR Calculator
Business plus household cash flow against the SBA's 1:1 global floor (and the 1.25x lenders want).
Down Payment (Equity Injection)
Your required 10% and which sources actually count.
Collateral Adequacy Calculator
Are you fully secured, and is your house in play?
Guaranty Fee Calculator
The FY2026 upfront fee on your loan amount.
Max Purchase Price Calculator
The highest price the cash flow will actually finance.
See the 2026 SBA acquisition-financing benchmarks (the numbers behind every calculator above), or put any of these calculators on your own site free .
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GOING DEEPER
Is a 7(a) the right program for this deal at all?
The calculator above gives you the number. The 7(a) vs 504 Analyzer runs it on your actual deal, for your industry, and tells you what to do about the answer. Six inputs, already filled in, verdict at the top.
See the 7(a) vs 504 Analyzer, $39Or browse all the tools. The calculators stay free.
Frequently Asked Questions
What is global DSCR for an SBA loan?
Global DSCR measures whether the business and the owner's household together can cover all debt. Lenders compute it as business cash flow plus household income, minus living expenses, divided by combined business and personal debt service. It catches deals where the business cash-flows but the household budget sinks the loan.
What minimum DSCR does the SBA require?
On a global basis SOP 50 10 8 requires a debt service coverage ratio of at least 1:1; the 1.15:1 figure is the separate business floor on loans over $350k, and 1.10:1 applies to 7(a) Small Loans of $350k or less. In practice most SBA lenders underwrite to 1.25x or higher, and 1.50x is considered strong. Lenders also stress-test the ratio, commonly by assuming a 10% decrease in monthly cash flow.
Why do lenders decline deals where the business DSCR looks strong?
Because the global calculation includes the owner's household. If personal debt service (mortgage, autos, student loans, cards) plus living expenses consume more than the owner's draw and outside income provide, global DSCR falls below the threshold even when business-only DSCR passes. This is one of the most common silent decline reasons.
What counts as personal debt service in a global DSCR calculation?
All recurring household debt payments: home mortgage or rent-replacing debt, auto loans and leases, student loans, minimum credit card payments, personal loans, and any co-signed obligations. Lenders pull these from your credit report and personal financial statement, so use the same numbers they will see.