The math behind our card estimates
Every listing card shows estimated cash flow after loan payments. Here is the exact structure we assume and why it meets current SBA rules.
Last reviewed June 2026 · Written against SOP 50 10 8 and current SBA notices
10%
Buyer cash down
10%
Seller note
80%
SBA 7(a) loan
10 yrs
Loan term
The structure we model
One structure, applied identically to every listing, every day:
| Buyer cash down | 10% of the estimated purchase price |
|---|---|
| Seller financing | 10% — a seller note at 7% over 10 years, payments included in debt service |
| SBA 7(a) loan | 80% over 10 years at best-case pricing — today's WSJ Prime + 2.25% (strong-file rate, under the Prime + 3% regulatory cap) |
| Purchase price | The listing's asking price, or its stated multiple × the midpoint of its public EBITDA range |
| Cash flow | The midpoint of the listing's public EBITDA / owner-earnings range |
| The card number | Cash flow minus one full year of payments on BOTH loans |
Does this meet SBA requirements?
Yes— SOP 50 10 8 requires a 10% equity injection of total project costs for a complete change of ownership, and the buyer's 10% cash covers it alone. The seller note stays out of the injection math, so the full-standby-for-life-of-loan rule never applies. The 10-year term is the standard 7(a) acquisition maturity, and the modeled rate sits under the Prime + 3% cap.
A screening number should show its work. Ours does.
Where this estimate stops
This number screens deals. Real underwriting moves with the negotiated price, verified financials (lenders check the seller's IRS transcripts), working-capital needs, your actual rate, and the SBA guaranty fee. For the detailed version, run the full calculator or the deal's own pre-qualification worksheet.
Where the rate comes from
We verify WSJ Prime daily against multiple published sources and model best-case pricing at Prime + 2.25%, the level strong files reach under the cap. See today's 7(a) rate for the full table by loan size and credit band.
AI summary
This page lays out the exact financing structure behind the "cash flow after loan payments" estimate on every CapBench listing card: 10% buyer cash down, a 10% seller note, and a 80% SBA 7(a) loan over 10years priced at best-case WSJ Prime + 2.25%. It explains why that stack meets SOP 50 10 8's 10% equity-injection rule and stays under the Prime + 3% rate cap, and where the screening number stops short of real underwriting. This is general information, not legal, tax, or financial advice, and CapBench is not a lender.
Source: CapBench SBA Intelligence, based on public SBA, lender, franchise, FDIC, and related records. CapBench is not a lender and does not guarantee financing.
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