Debt-service coverage is a ratio, not a verdict. The numerator must identify which cash flow is available after the buyer's operating assumptions, and the denominator must use a stated loan amount, rate, and amortization. If either side is hidden, two people can quote different coverage figures for the same deal.
What is the basic calculation?
Divide the cash flow available for debt service by annual principal and interest. For a first pass, begin with the CIM's stated SDE, then print any owner-replacement salary, questionable add-backs, required capital spending, or other adjustments included in the numerator. The result should be shown at the asking price and at the two lower price cases without changing unrelated assumptions.
Which loan facts need to be printed?
State the purchase price, equity injection, financed amount, interest rate, amortization period, and whether seller debt is included. The SBA 7(a) page says the program can fund complete or partial ownership changes and that the applicant must demonstrate a reasonable ability to repay. The lender decides its underwriting and required documents.
What does the free card establish?
The card fills the ask, 10% under, and 20% under rows using one set of printed assumptions. It does not state business value, predict approval, or recommend a bid. Its job is to expose which inputs drive the ratio so a buyer can change one assumption and see the arithmetic change with it.
What can the Reality Contact check provide?
The free card calculates coverage at the asking price, 10% under, and 20% under with every loan assumption printed. The $149 CIM first look identifies claims, omissions, stated add-backs, coverage, and ten broker questions. The $495 pre-LOI brief adds the tax-return and P&L tie-out, deeper add-back reconstruction, concentration and owner-dependence read, working-capital estimate, and thirty questions. The buyer sends every question.
Where does the operator boundary sit?
This is not financial advice. Reality Contact, LLC writes an analysis memo from buyer-supplied documents. It is not a quality-of-earnings report, audit, assurance engagement, valuation, or opinion. Reality Contact is not a CPA firm or broker, takes no closing-linked fee, contacts no seller, broker, or lender, and gives no recommendation. The coverage card is a real calculation on printed assumptions. Reality Contact is sampling whether buyers want the deeper document read. We reply by email with the ask, 10% under, and 20% under cases so the arithmetic can be rerun. The current source check starts with this published record.