The SBA minimum DSCR (debt service coverage ratio) is 1.15x—but that doesn’t mean lenders will sign off at that threshold. Here’s what we see in the market: • Most SBA lenders look for 1.25x–1.35x as a realistic DSCR for approval • Anything under 1.2x typically triggers further scrutiny—or a rejected term sheet • Add-backs must be clearly documented and defensible to support your DSCR math • “Breakeven” deals rarely get financing, even if technically compliant We help buyers validate their DSCR calculations and assess whether a deal will fly with lenders before they commit. Need help running the numbers on a deal you're considering? redacted