Calculating Global Cash Flow for SBA 7(a) and 504 Loans Under the New SOP 50 10 8.1 — Wed, Dec 2

Affiliate Cash Flow, Guarantor Obligations and Debt Service Coverage

Coleman Professional Webinar Training
Date: Wednesday, December 2, 2026
Time: 2:00 p.m. Eastern
Includes e-certification & recording

Global Cash Flow Analysis Under SOP 50 10 8.1

An SBA borrower can demonstrate adequate debt service coverage on its own financial statements while affiliated businesses, owner distributions and personal obligations create additional demands on cash flow. These financial relationships can significantly affect the borrower’s overall repayment capacity.

SOP 50 10 8.1, effective October 1, 2026, addresses evaluating affiliate cash flow, adjusting operating cash flow, and assessing global debt service coverage. The requirements differ by loan program and transaction structure, particularly for business acquisitions, ownership changes and 504 financing.

Join Coleman instructor Michael Bland, Chief Credit Officer at Lendesca, for a practical working session on calculating global cash flow. Drawing on 30 years of SBA lending and credit experience, Michael will walk through a sample SBA credit transaction involving an operating business, affiliated companies and individual guarantors.

Using financial statements and debt schedules, Michael will demonstrate how to assemble the financial information, calculate available cash flow, evaluate adjustments and determine global debt service coverage. He will also discuss how experienced credit officers evaluate the results, identify repayment risks and document their conclusions in the SBA credit memorandum.

What Michael Bland Will Cover

• Step-by-step preparation of a global cash flow calculation using a sample SBA credit transaction.
• Identifying the affiliated businesses, guarantors and financial obligations that belong in the analysis.
• Calculating EBITDA, determining available cash flow and evaluating appropriate adjustments.
• Evaluating cash flow adjustments for owner compensation, distributions, S-Corporation taxes, rent and nonrecurring expenses.
• Incorporating personal debt obligations, living expenses and outside income into the global analysis.
• Evaluating intercompany transfers and related-party transactions while avoiding double counting of income and expenses.
• Calculating total debt service, including existing loans, shareholder debt, seller financing and proposed SBA financing.
• Applying Standard 7(a) debt service coverage requirements, including 1.15:1 business coverage and 1:1 global coverage.
• Global cash flow in 7(a) business acquisitions: 1.25:1 and 1.15:1 transaction-specific coverage, 1:1 global coverage and restrictions on projections.
• Global cash flow for 504 loans: 1.15:1 operating-company coverage, adjustments requiring global analysis and the treatment of outside income.

Who Should Attend

SBA 7(a) and 504 underwriters, credit analysts, Chief Credit Officers, SBA lending managers, commercial lenders, CDC loan officers and credit committee members responsible for reviewing and approving SBA loans.

The session will be particularly useful for professionals underwriting business acquisitions, complex ownership structures and transactions involving multiple businesses or guarantors.

Your Instructor

Michael Bland is Chief Credit Officer at Lendesca and brings 30 years of SBA lending and credit experience to Coleman training. His background includes senior credit leadership positions, underwriting, credit policy and evaluating repayment ability for SBA 7(a) and 504 transactions.

How the Webinar Works

We use Microsoft Teams as the webinar platform.

Recording
All Coleman webinars are recorded, and a link is sent to all attendees.

Single Site License
The single-site license grants your institution one viewing of the webinar. It is permissible to use a single-site license on one device in a conference room for multiple attendees to view. The webinar can be viewed on any device.

Multiple Site License
A multiple-site license is an unlimited access pass for anyone at your institution. You will be given a link that anyone in your email domain can use.

Webinar Links and Handouts
The webinar link will be sent out prior to the session, and included again when we send the presentation and handouts.

Participants Earn Certificates of Participation
All Coleman Webinar attendees will receive a certificate of participation. This documents your continuing education history for SBA and your regulators.

Questions
Questions throughout the webinar are strongly encouraged. There are two ways to ask a question. The first is to ask the question via the chat in Microsoft Teams. The second is to send an email to anna@colemanreport.com. Also, feel free to ask pre- and post-webinar questions.

The Fine Print
1) Substitutions are allowed at no charge.
2) Cancellations receive a 100% credit for any Coleman product.
3) As with all our products, we offer a 100% money back satisfaction guarantee — no questions asked.

3 Easy Ways to Order
1) ONLINE — Register and pay online via QuickBooks
2) EMAIL –Send an email to cindy@colemanreport.com with “Webinar Registration” in the Subject Line. We will do all the paperwork and either send you a sales receipt or an invoice.
3) PHONE — Call us at 818-790-4591.