SBA Loan Packaging

A 7(a) file an underwriter can say yes to: coverage reality, equity injection, the lender’s read anticipated.

The lender’s read is mechanical before it is human: debt-service coverage against the threshold underwriting is built around, an equity injection sourced and seasoned the way verification requires, addbacks that each carry documentation rather than an anecdote. A file that makes the underwriter reconstruct the math reads as risk, whatever the business underneath it is worth.

So the work is to run the lender’s tests before the lender does. Recast the trailing financials; document every addback; model coverage at realistic rates, with sensitivity on the assumptions that move it; structure the injection so its source survives scrutiny. Then assemble the package in the underwriter’s order: the file that answers the next question before it is asked.

We wrote the underwriter’s tests into software before we ever ran them by hand: the firm’s underwriting models hard-code the 10% equity injection the program requires for a change of ownership and the 1.25x coverage most lenders underwrite to. SBA’s own floor sits lower, and the gap between the two is where deals get declined. The government’s own 7(a) and 504 loan records show how this market actually finances, on the record. The same arithmetic, run on your file, before the lender runs it.