For SBA lenders
Cash proof for the trailing twelve months and two fiscal years, normalized EBITDA and coverage in SOP 50 10 8.1 form. Engaged by the lender. Fixed fee.
Each requirement maps to a table in the report, so your credit team can check it.
Bank deposits reconciled to the income statement and tax returns, TTM and two fiscal years.
Each add-back traced to the ledger, payroll and returns; unsupported ones removed.
Debt service coverage on the last fiscal year and the two-year average, against 1.25×.
Normal working capital, the gap at closing, and items that add to the cash needed.
Concentration, contract renewals, related parties and matters for the lender's consideration.
Every document examined is listed, with the period it covers.
Fixed fees, agreed in writing before you pay. No hourly billing.
Scope the deal and the timeline.
Fixed fee and scope agreed before work starts.
Bank statements, ledger, payroll and returns go to a private folder.
Addressed to the lender, with the Excel databook.
Sergei carries professional liability (E&O) insurance.
Engaged by the lender
Not sure it's a fit?
Three change-of-ownership rules that shape an acquisition loan.
For an initial acquisition, debt service coverage must be at least 1.25 times, measured on the last fiscal year or the average of the last two, on a historical or adjusted basis, not on projections (special-purpose real estate deals aside).
Every change of ownership needs a business valuation from a Qualified Source, requested by and prepared for the lender. Total debt for the deal, including seller notes that aren't on full standby, can't exceed that valuation.
For an initial acquisition or expansion where the business purchase price is $3 million or more (not counting owner-occupied real estate), the lender must obtain a QoE that includes a cash proof for the trailing twelve months and the last two fiscal years.
The lender. SBA rules require the lender, not the buyer or seller, to order the QoE on deals of $3M or more.
A fixed fee paid by the lender: $4,500 under a $2M price, $6,500 for $2–5M, quoted above $5M.
7–10 business days after complete documents.
Yes. The report is prepared for the lender, not for the seller, and no fee depends on the deal closing.
Yes, professional liability (E&O) insurance.
Only Sergei works on the file, under an NDA. Files go to a private folder and are deleted 90 days after delivery.
Sergei replies personally within one business day. Prefer to talk? Book a free 30-minute call.
