What DSCR do I need for an SBA loan?

Most SBA 7(a) lenders look for a DSCR of at least 1.15x–1.25x, though the exact threshold depends on the lender and loan size. Funderly labels a projected DSCR below 1.0x as tight so you can see the risk before submitting.

Does Funderly generate the SBA forms themselves?

No. Funderly builds the business plan and financial projections (including DSCR and the repayment schedule) that support an SBA application — it does not generate the SBA's own application forms (e.g. Form 1919).

Is this only for SBA loans?

No — the same DSCR and repayment-schedule math applies to most bank and development-finance SME loans, in the US and elsewhere. SBA is simply the most commonly searched US program.

Funderly use case

Business Plan for an SBA Loan

SBA lenders check specific numbers before approving a 7(a) or similar loan — debt service coverage, a realistic repayment schedule, and a credible use-of-funds picture. Funderly builds those numbers into the plan instead of leaving them to a generic financial section.

Best for US founders and SMEs preparing an SBA 7(a) or similar loan application.

What this helps with

DSCR calculated against the 1.25x (meets bank minimum) / 1.0x (tight) thresholds SBA lenders reference
Full loan amortization schedule with grace-period support
Formula-driven financial projections, not AI-guessed

How the workflow supports this

What an SBA lender checks

An SBA 7(a) lender is underwriting the loan, not just reading the plan — most rejections trace back to the numbers, not the narrative.

Debt service coverage ratio (DSCR): most SBA lenders want to see at least 1.15x–1.25x before approving a loan.
A realistic repayment schedule that matches the requested loan term and any interest-only or grace period.
A credible use-of-funds breakdown tied to the amount requested.
Owner equity injection and collateral position alongside the projected cash flow.

How Funderly builds this in

Funderly's Lender tier is built around this exact checklist rather than a generic financial narrative.

DSCR is calculated from your actual revenue and cost inputs against the 1.25x/1.0x thresholds — not asserted, computed.
A full amortization schedule (including interest-only grace periods) is generated and exported as its own XLSX tab.
Financial projections run from formulas driven by your inputs, so the numbers you submit are numbers you can defend to an underwriter.

Getting started

The workflow runs market and competitor analysis before the financial model, so the plan tells a consistent story end to end.

Describe the business and complete the guided planning steps.
Build the financial model on the Lender tier ($499 one-time) to unlock DSCR and the repayment schedule.
Export as PDF, DOCX, XLSX, or a PPTX summary for the loan package.

Use cases

Related planning paths

Business Feasibility Analysis for Founders and SMEs
Evaluate whether the business makes sense in a real market, understand the customer and competitor picture, and turn early findings into practical next steps.
Financial Projections Software for Founders and SMEs
Create projections from editable assumptions, review the logic behind the numbers, and keep the financial story connected to the rest of the plan.
Loan-Ready Business Plans and Financial Documents
Turn planning inputs into a complete, exportable business plan — a structured narrative, a formula-driven financial pack, and documents in the format a lender, grant reviewer, or partner will actually accept.

Blog

Related guides

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