Which debt service coverage ratio (DSCR) calculation method should be used:
EBITDA, UCA cash flow, or free cash flow? Should the primary or global DSCR
result be used for underwriting? Should there be a provision for maintenance
capital expenditures? What about Section 179 depreciation expense? Should a
deduction for taxes and living expenses be included? Should the underwriting be
based on the DSCR before or after distributions? What should be done with
missing debt service schedules? Should loans to stockholders be included? Join
this webinar to learn the answers to these questions and more.
- Pertinent regulations
- SBA’s requirements
- Calculating debt service coverage, including EBITDA, UCA cash flow, and
free cash flow approaches
- 179 depreciation expense
o Net operating loss carry-forward
- Other considerations, including
rent payments, living expenses, capital expenditures (CapEx), and providing for
- Schedule E Supplemental Income (Loss)
- Stress testing debt service coverage – two different
- Repayment support – guarantor support analysis
service coverage for CRE loans
S. Wayne Linder, Young & Associates, Inc.
Live and recorded webinar, handouts, quiz with answer key and training log are included.