When readers buy products and services discussed on our site, we often earn affiliate commissions that support our work. Learn more.

About the Author

Tricia Tetreault

Tricia Tetreault is a staff writer at Fit Small Business, specializing in Small Business Finance. She holds a Master's in Business Administration from Champlain College and has spent the majority of her career working in federal government lending.

Get Our Best Financing Articles Delivered Weekly!
(Only if you want to get insider advice and tips)
This email address is invalid.
Get Our Best Financing Articles Delivered Weekly!
(Only if you want to get insider advice and tips)

Reader Interactions

Comments (10) • Likes (0)
Disclaimer: Reviews on FitSmallBusiness.com are the product of independent research by our writers, researchers, and editorial team. User reviews and comments are contributions from independent users not affiliated with FitSmallBusiness.com's editorial team. Banks, issuers, credit card companies, and other product & service providers are not responsible for any content posted on FitSmallBusiness.com. As such, they do not endorse or guarantee any posted comments or reviews. Like Ask a Question

    • Jeff White

      Hi Rick!

      Thanks for your question. We are using the Annual Business Owners Income as part of the calculation, but the calculator does not actually calculate it. That is one of the input fields that you must enter in order to get an accurate calculation. So you should be typing in your actual annual income, including your salary, so that the calculator can work properly. This number would include any financial incentive or payment you receive from the business that you would claim as income on your personal tax return. Most small business loans take the business owner’s credit profile into consideration for a potential approval so it’s important that you include all of your income so you can maximize your ability to get past the approval process. Good luck!


  1. Rodney Ellison

    I am trying to buy a business I thay wait help me and I have a good credit score and I have not been late on any off my payments I have always keep my payments a head so don’t waste your time because they want let you have any money at all by the way my name is Rodney Ellison owner of Ellison mobile home transport LLC have been in business for over 20 years

    • Ian Atkins

      Hi Rodney,

      Thanks for sharing. Getting an SBA loan to buy a business can be tough. Keep in mind, there are two parties that an SBA lender is evaluating when someone want to buy a business. Even if you are a very strong borrower, the business you’re looking at could be presenting problems. That business’s financial history, the industry it’s in, or how the previous owner’s kept their books could all present issues to a lender that would prevent them from making a loan. Check out this article for more detail on getting a loan to buy a business.

      If you have a good credit score (680+) with no bankruptcies or tax liens, 10% cash down payment, collateral, and your business is profitable then you may be the business you’re looking to buy that’s holding things up. In these circumstances, sometimes it’s worth looking for other similar businesses to buy or consider obtain a loan to simply expand into that space.



  2. James

    So if you are a start-up buying an existing business that has been around for 30+ years, does the 2-year business operating requirement still apply?


    • Ian Atkins

      Hi James,

      SBA loans are available for startups that are buying a business.
      Keep in mind, the lenders will have higher standards for a startup buying a business vs. an established business buying a competitor (or other business).

      Check out this article for more details on getting a loan to buy a business.



  3. hemant

    I bought a gas station in 2012 I got a loan on 300,000 for 7% interest. i prophet it all 4 year now I want to refinance at lower interest. my income with salary is $50,000 and i owe 204308.35. i have a good credit score I don’t care paying the same amount. how low you think I can get my interest rate

    • Priyanka Prakash

      Hi Hemant,

      Is your current loan an SBA 7(a) loan? 7 percent is a good interest rate. Given your current income and the fact that you have a good credit score (it should ideally be over 650 and the higher the better), you may be able to refinance into an SBA loan with a 6 % interest rate. While that difference may not sound like much, the cost savings can be significant in the long run. We recommend applying for a new loan with SmartBiz, our recommended SBA provider for loans under $350K.

      Best of luck,
      Priyanka Prakash

  4. Vince

    Your “Simple Debt Service Ratio Formula” reads as follows:
    (Monthly Loan Payments x 12) / Annual Business Owners Income Including Owners Salary

    I believe you meant:
    Annual Business Owners Income Including Owners Salary/(Monthly Loan Payments x 12)

    Thanks for the article