Calculating DSCR?

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November 04, 2025

by a searcher from IESE Business School in St. Petersburg, FL, USA

I just saw an SBA lender using an "Effective Total Business EBID" to calculate DSCR. I thought an adjusted EBITDA was used to calculate DSCR. Could somebody please explain?
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Reply by a searcher
in St. Petersburg, FL, USA
Have you asked chat gpt?
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Reply by a professional
from Arizona State University in Scottsdale, Arizona, United States
There's no mandated DSCR formula. At the end of the day, lenders are investors and can use whatever formula they/their bank are most comfortable with.
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