What lenders check
Each lender sets its own qualification criteria, and they differ for banks, online lenders and SBA-backed loans. The usual checks are time in business, revenue and profit, whether the profit can cover the payments alongside existing debt, the owner's credit score, the type of business and collateral or a personal guarantee.
This calculator lets you enter the checks that can be measured from your figures: debt service coverage, months in business and credit score band. It shows whether the loan you want meets each one, and how much you could borrow if the profit were the only limit.
Worked example: a $100,000 loan from an SBA 7(a) lender
A business that wants $100,000 at 10.5% over seven years pays $1,686.07 a month, or $20,232.81 a year. With $12,000 a year already going on other debt, yearly debt payments rise to $32,232.81. On $60,000 of EBITDA the debt service coverage is 1.86. A loan of $350,000 or less from an SBA 7(a) lender uses 1.10, so the profit is $24,543.91 above the coverage needed. With 36 months in business and a good credit score against a lender who wants 12 months and a fair score, it meets all 4 of your criteria.
The loan is 16.67% of the $600,000 revenue and 1.67 times the yearly profit. The largest payment the profit supports on a new loan is $3,545.45 a month, which is a loan of up to $210,279.54 over seven years, $40,221.34 over one year, $109,082.71 over three years, $164,951.66 over five years and $262,752.78 over ten.
SBA 7(a) coverage and limits
Under SBA SOP 50 10 8.1, effective October 1, 2026, a standard 7(a) loan needs a debt service coverage ratio of at least 1.15 on a historical or projected basis, and at least 1.0 on a global basis. A 7(a) Small loan of $350,000 or less that is not a change of ownership needs 1.10. A single 7(a) loan is limited to $5,000,000, and working capital and intangible assets such as goodwill are limited to 10 years. Real estate can run up to 25 years, which this check does not model.
On a $500,000 loan over 10 years with $150,000 of EBITDA, the payment is $6,746.75 a month and the coverage is 1.61 against the 1.15 needed. A 12-year term fails the 10-year check and the result becomes meets 3 of your 4 criteria. A $6,000,000 loan fails the $5,000,000 limit even when the coverage is 2.54.
Another lender with a higher coverage
Choose other lender to enter your own coverage. With $40,000 of EBITDA on the same $100,000 loan and a lender that wants 1.5, the coverage is 1.24, the profit is $8,349.21 short of the 1.5 required and the largest loan the profit supports falls to $72,489.53. The result is meets 2 of your 3 criteria. A weaker credit score fails the credit check in the same way.
What this pre-check leaves out
This is a planning check, not a credit decision. It does not model how a lender adjusts your EBITDA, scores your credit, values collateral or looks at your industry, and it does not check eligibility rules such as size standards, ownership and use of proceeds. SBA also expects equity injections for some purposes, which this page does not apply. The criteria you enter for another lender are your assumptions. A lender may decline a loan that passes every check here.
For the full cost of a loan with fees and APR, use the business loan calculator.
Use the right country page
This page stays in US dollars and uses US terms: credit score bands, EBITDA, debt service coverage and SBA 7(a). The country choices above the inputs open separate local pages. Choosing United Kingdom opens the business loan eligibility calculator, which uses a lender's own criteria and credit standing. The inputs reset and amounts are not converted.
Inputs for the US business loan eligibility calculator
Loan you want, interest rate and term
The amount, the nominal yearly rate you expect and the years to repay, in whole months.
Yearly turnover
Sales over the last 12 months.
Yearly profit (EBITDA)
Profit before interest, tax, depreciation and amortization, after fair pay for the owner.
Yearly payments on existing debt
What you already pay each year on business loans and leases. Enter zero for none.
Months trading and the owner's credit score
How long the business has operated and the owner's personal credit score band.
Type of lender
An SBA 7(a) lender applies SBA debt service coverage and the 5,000,000 dollar and 10-year limits.
Cover, months and credit score your lender requires
Your lender's own criteria. The calculator checks the loan against them.
CALCULATOR QUESTIONS
US business loan eligibility calculator questions
How do I know if I qualify for a business loan?
Lenders set their own criteria, usually time in business, revenue and profit, the owner's credit score and coverage for the payments. Enter your lender's figures and the calculator shows which you meet.
What debt service coverage does the SBA require?
At least 1.15 for a standard 7(a) loan and 1.10 for a 7(a) Small loan of $350,000 or less that is not a change of ownership, under SOP 50 10 8.1.
What is debt service coverage?
Yearly profit (EBITDA) divided by yearly payments on all debt. $60,000 of profit against $32,232.81 of payments is a coverage of 1.86.
How much can my business afford to borrow?
Divide profit by the coverage required, subtract what you already pay on debt, and turn the remaining yearly payment into a loan. $60,000 at 1.10 supports up to $210,279.54 over seven years at 10.5%.
What are the SBA 7(a) loan limits?
A single loan is limited to $5,000,000, and working capital and goodwill loans to 10 years. Real estate can run up to 25 years.
Is this a guarantee of approval?
No. The lender decides, using your full circumstances and credit history. A loan that passes every check here can still be declined.
What happens when I change country?
The United Kingdom option opens the separate business loan eligibility calculator, in pounds, with a lender's own criteria. Your inputs are reset rather than converted.