Build a Uses-of-Funds Schedule
List the specific purpose of the borrowing, amount needed and when each cost occurs. Separate an acquisition price from working capital, staffing, technology, legal expenses and integration costs. Explain how the spending supports the business and what can be staged if funding or timing changes.
Make Cash Flow Reviewable
Prepare current financial statements, tax returns, existing debt schedules and an explanation of unusual items for a later secure lender review. Keep owner compensation and expected ongoing expenses visible. Do not submit those documents in the initial site form. A lender may request additional information directly through its own process.
Compare More Than Interest Rates
Ask about amortization, term, origination costs, rate changes, collateral, guarantees, covenants, prepayment conditions and what could trigger default. A smaller monthly payment can result from a longer term or a balloon rather than a lower total cost. The website calculator assumes fixed-rate full amortization and excludes fees.
Understand the Program and the Lender
SBA describes 7(a) uses that include working capital and changes of ownership, but an individual business must meet program and lender requirements. Do not assume a practice or transaction qualifies from a generic program description. Ask the lender to explain eligibility, required equity, documentation and next steps in writing.
Decide What Happens in a Downside Case
Reduce revenue and retention assumptions, delay expected growth and add an integration overrun. Consider your reserve needs and how much operating flexibility remains. Debt, seller financing and equity change the business in different ways. Evaluate the structure as well as the amount available.
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These official sources support the concepts and provide current requirements. The practical workflow and questions are our editorial guidance.
General education. Your circumstances, agreements, and applicable rules matter. Review individual decisions with appropriately qualified professionals.