The Paycheck Test

Open any business listing you're eyeing tonight. Type in the two numbers. See the paycheck it could pay you.

From the listing

Asking price $ The price on the listing. Cash flow $ The listing's cash flow line. Some sites call it SDE or owner's earnings. Your cash down payment The SBA minimum is 10% of the total cost. At 5%, a seller note covers the other 5%. More down means a smaller loan and a bigger paycheck. The seller helps A seller note on full standby adds 5% of the total cost on top of your cash, the most the SBA lets count. At 5% down it is required, so we tick it for you.

Owner's paycheck Paid monthly

Type the asking price and the cash flow from the listing. Your paycheck shows here as you type.

The assumptions, set for you

SBA rate 10.00%, today's cap for loans over $350,000 (smaller loans can run higher). 10-year term. The SBA guarantee fee rolled into the loan. About 0.5% for due diligence and closing, rolled in. Down payment measured on the total cost.

Estimates from the listing's numbers and the SBA's published rules, before income tax. A lender may count less.

For the person who booked the call.

Please don't forward the link.

Regalis Capital