DSCR (Debt Service Coverage Ratio) = operating income ÷ loan payments. Lenders typically want ≥ 1.25x — meaning you earn $1.25 for every $1 of loan payment. It's the number that most often makes or breaks approval.
DSCR calculator
Seeded with the model's Year-1 figures ($18,560 EBITDA vs $13,450 annual debt service = 1.38x). Try your own.
0DSCR
—vs 1.25x target
01.25x target3x+
How the SBA 7(a) loan is structured here
The terms
- $75,000 principal (scales $50k–$150k)
- 13.0% fixed (Prime + spread, mid-2026)
- 84 months (7-yr) term
- 6-month interest-only ramp, then amortizes
Why interest-only first
During the ramp, the business is buying inventory and hasn't reached run-rate. Paying interest only ($812.50/mo) instead of full principal+interest ($1,429.23/mo) preserves cash exactly when it's tightest.
Loan payment calculator
See the interest-only vs amortizing payment, and total interest over the life of the loan.
$0interest-only / mo
$0P&I / mo after ramp
$0total interest
What else lenders want
- Owner equity injection. The owner already put in ~$8,000 (inventory, website, formation) — SBA typically expects ~10% skin in the game.
- Collateral & guaranty. Here the loan is secured by inventory and equipment plus an owner personal guaranty.
- Coverage in every year. The model clears 1.25x in Year 1 (1.38x) and climbs to 3.18x — lenders like a rising trend.
- A break-even with a cushion. 91 break-even units vs 260 projected is a defensible margin of safety.
Rate basis: SBA 7(a) Prime + spread as of mid-2026 (SBA.gov / sba7a.loans); DSCR and structure per the FactorDrones model. Educational only — your actual rate, term, and approval depend on the lender and your credit.
Want the spraying side instead?
Get an instant quote to have us spray, or gear up to run your own aircraft.