From our researchMature-cohort SBA 7(a) loans charge off at 6.44 percent by count, but the spread across industries exceeds 30x. See the full industry analysis.
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Revenue minus operating expenses, before interest, taxes, depreciation, amortization.
Total principal + interest on all debt over 12 months.
DSCR Result
SBA thresholds per SOP 50 10 8 (6/1/2025). Most lenders independently require 1.25x+ regardless of SBA minimums.
Rate stress test
See how DSCR holds up if Prime rises 100, 200, or 300 bps. Variable-rate SBA loans are exposed to this risk.
All 18 NAICS benchmarks
Directional ranges — see data tier badges for source confidence. For production underwriting, verify against RMA Annual Statement Studies.
| NAICS | Industry | Conservative | Average | Strong | NOI Margin | Tier |
|---|---|---|---|---|---|---|
| 721110 | Hotels & Motels | 1.20x | 1.35x | 1.60x | 25%–35% | B |
| 721214 | RV Parks & Campgrounds (incl. Glamping) | 1.25x | 1.40x | 1.70x | 35%–50% | B |
| 722320 | Wedding & Event Venues | 1.30x | 1.50x | 1.80x | 25%–40% | C |
| 722511 | Full-Service Restaurants | 1.25x | 1.40x | 1.70x | 6%–12% | A |
| 722513 | Limited-Service Restaurants (QSR, Fast Casual) | 1.30x | 1.45x | 1.80x | 10%–18% | A |
| 312120 | Breweries | 1.20x | 1.35x | 1.60x | 10%–20% | B |
| 457110 | Gas Stations with Convenience Store | 1.25x | 1.40x | 1.65x | 8%–15% | A |
| 811192 | Car Washes | 1.25x | 1.45x | 1.80x | 30%–50% | B |
| 811111 | Auto Repair & Maintenance | 1.25x | 1.40x | 1.65x | 10%–20% | B |
| 812310 | Laundromats | 1.30x | 1.50x | 1.85x | 30%–45% | A |
| 531130 | Self-Storage Facilities | 1.25x | 1.40x | 1.70x | 60%–70% | A |
| 531110 | Multifamily Housing | 1.20x | 1.30x | 1.50x | 55%–65% | A |
| 713940 | Fitness & Recreational Sports Centers | 1.25x | 1.40x | 1.65x | 15%–25% | B |
| 624410 | Child Day Care Services | 1.20x | 1.35x | 1.55x | 10%–20% | A |
| 621210 | Medical & Dental Offices | 1.25x | 1.50x | 2.00x | 30%–40% | A |
| 623312 | Assisted Living Facilities | 1.25x | 1.35x | 1.55x | 25%–35% | A |
| 31-33 | Manufacturing (General) | 1.25x | 1.40x | 1.70x | 8%–15% | B |
| 111998 | Agritourism | 1.30x | 1.50x | 1.80x | 15%–30% | C |
Tier A: Strong public association data from primary industry bodies.
Tier B: Reasonable estimates compiled from multiple public sources.
Tier C: Sparse public data — directional only, treat with caution.
Frequently Asked Questions
What is DSCR for SBA loans?+
Debt Service Coverage Ratio (DSCR) measures how many times a business's net operating income covers its total annual debt service. It is calculated as NOI divided by annual principal and interest payments on all debt. SBA requires a DSCR of at least 1.15x on Standard 7(a) loans over $350,000, and at least 1.10x on 7(a) Small Loans at or below $350,000. Most lenders demand 1.25x or higher regardless of the SBA minimum.
What is the minimum DSCR for an SBA 7(a) loan?+
Under SOP 50 10 8 (effective 6/1/2025), the minimum DSCR for Standard 7(a) loans over $350,000 is 1.15x. For 7(a) Small Loans (≤$350,000) the minimum is 1.10x following the SBSS score update. Projection-based loans (startups, new construction) must demonstrate 1.15x DSCR is achievable within 24 months of stabilization, typically supported by a third-party feasibility study.
How is DSCR calculated?+
DSCR = Net Operating Income (NOI) ÷ Annual Debt Service. NOI is revenue minus operating expenses, before interest, taxes, depreciation, and amortization. Annual Debt Service is the total principal and interest payments on all debt over a 12-month period. A DSCR of 1.25x means NOI is 1.25 times greater than annual debt service — a 25% cushion above breakeven coverage.
Are these NAICS benchmarks verified?+
The 18 industry benchmarks are tagged with data quality tiers. Tier A entries draw from strong public association data. Tier B entries are reasonable estimates from multiple public sources. Tier C entries are sparse or proprietary and should be treated as directional only. For production underwriting decisions, all figures should be verified against RMA Annual Statement Studies or BizMiner.
Why does this tool stress test DSCR at Prime +100/+200/+300 bps?+
SBA 7(a) loans are typically variable rate, pegged to WSJ Prime plus a lender spread. Stress testing DSCR at Prime +100, +200, and +300 basis points shows how debt coverage holds up in a rising rate environment. Lenders and CDCs use the same approach during underwriting. A deal that only works at current rates is fragile — strong deals maintain 1.15x+ even at +200 bps.
Illustrative only. This calculator is provided for illustrative and educational purposes. DSCR thresholds (1.15x Standard, 1.10x Small Loan) are based on SOP 50 10 8 general underwriting guidance; individual lenders and SBA itself may apply different standards based on project, industry, and credit profile. Results do not constitute a commitment to lend or a loan offer.
NAICS benchmarks. The 18 industry benchmarks are directional ranges compiled from public industry associations, IBISWorld free summaries, HVS/STR public reports, and SBA lender resources. Data tiers indicate source confidence. For production underwriting, verify against RMA Annual Statement Studies or BizMiner.
Not affiliated with SBA. sba-feasibility-study.com is an independent resource and is not affiliated with, endorsed by, or sponsored by the U.S. Small Business Administration or any government agency.
Projection-Based DSCR? You'll Need a Feasibility Study.
SBA requires projection-based deals (startups, new construction, change of use) to demonstrate 1.15x DSCR is achievable within 24 months — typically validated by a third-party feasibility study. Institutional-quality reports from $4,900 with a 50/50 fee structure. Fixed-fee scope within 24 hours.
Request a QuoteRead the complete SBA loan DSCR calculation, threshold and stress-testing methodology before using calculator results in a credit file.