Learn how to calculate your debt service coverage ratio and the importance of debt service coverage ratio to lenders when applying for a loan on this week’s free webinar with SBDC director Kelly Bearden. Other topics include borrowing capacity and planning, positioning your business for capital, how to use a 13-Week cash flow projection plan, and more.
This marks the 368th episode of the “Webinar Wednesday” business series that provides news and information helpful to employers and business owners.
The CSU Bakersfield SBDC provides free one-on-one help to small business owners. New and existing businesses can go to https://csubsbdc.com/ for more information or to sign up to meet with a business advisor at no cost.
TIMESTAMPS
00:00 Intro
00:57 What’s up today January 14, 2026
05:59 Kelly introduces LaMonica Lacey, SBA Office of Disaster Recovery and Resilience
06:28 LaMonica begins to speak about Disaster details and SBA loan options for Mono County and surrounding areas, including low fixed interest rates and deferment for the first year.
Pack Fire – Mono County https://www.sba.gov/article/2025/12/10/sba-offers-disaster-assistance-california-businesses-private-nonprofits-residents-affected-pack-fire
Pack Fire – EIDL loans https://www.sba.gov/funding-programs/disaster-assistance/economic-injury-disaster-loans
19:13 Debt service coverage ratio (DSCR) – explanation of formula
20:16 Variations in acceptable ratios noted: 1.25 standard, 1.0 for some startups or nonprofit lenders, and 1.5 signals strong borrowing potential.
21:43 Calculating Borrowing Capacity from DSCR
22:44 A rough borrowing calculation is presented: with a 9% interest rate and a 10-year term, a loan of around $657,821.13 is possible based on cash flow.
24:46 Importance of debt service coverage ratio is emphasized, showing how lenders assess affordability and how add-backs like depreciation affect cash flow.
27:26 13-Week Cash Flow Projection Tool – The value for lenders and identifying surplus cash and periods of shortfall.
37:23 Subscribe to our CSUB SBDC YouTube Channel https://www.youtube.com/@csubsbdc
43:43 Kelly and LaMonica – Questions and Answers with webinar attendees