Last week, we announced our Cash Flow Analysis Calculator for people who are awaiting EIDL funding decisions. In this post, we explain how to use the Cash Flow Analysis calculator, and what inputs may work, depending on the type of tax return you filed. This feature is geared to help the millions of small businesses who are trying to qualify for EIDL loans greater than $500,000.
Who Should Use the EIDL Cash Flow Analysis Calculator?
For any small business owners, sole proprietors, or independent contractors who are applying for EIDL loans greater than $500,000, SBA loan officers require further review of your application to make sure you can repay the loan.
For this increase, the SBA requires 5 additional forms. Then based on these documents, they'll review your cash flow.
Our calculator is based on the formula that real SBA loan officers use to help make a determination on repayment ability and approve or deny an SBA EIDL loan applicant.
How To Use The EIDL Cash Flow Analysis Calculator?
Here is the SBA EIDL cash flow analysis. There are 7 fields you'll need to fill in before you see this type of output screen. The output screen will calculate your net cash flow, your monthly loan payments (based on the EIDL terms) and whether you'll likely be approved based on this methodology or not.
Here's How to Find Your 2019 Net Income
For the first 3 fields, you'll need to grab your 2019 tax return for reference. This is the tax return the SBA has asked for on many occasions (remember the 4506-T?)
Here's where you might find your Net Income on your 2019 tax return*
Schedule C: line 31
Form 1120: Line 11 - Line 27 = net income
Form 1120-S: Line 21
Form 1065: Line 22
*Disclaimer: all of this is for illustrational purposes only and your number may differ, consult with your accountant to figure out your specific situation.
Here's How to Find Your 2019 Depreciation and Interest
For these two fields, here's some basic mapping:
Schedule C: Line 13
Form 1120: Line 20
Form 1120-S: Line 14
Form 1065: line 16a
Schedule C: Line 16a and 16b
Form 1120: Line 18
Form 1120-S: line 13
Form 1065: line 15
Here's How to Find Your Annual Business Debt Service
For this you'll need to reference the Schedule of Liabilities, one of the new forms the SBA has asked for for EIDL loan increases over $500,000.
This Schedule of Liabilities reflects your outstanding business debt. To figure out the Annual Business Debt Service, add all monthly payments on the sheet and multiple by 12.
Here's How to Find Your Outside Income and Personal Debt Service
The next two inputs are based on your Personal Financial Statement, another required document that the SBA request for the EIDL increases.
For the Annual Outside Income, reference your Source of Income on your Personal Financial Statement. And for your Personal Debt Service, reference your liabilities section on your Personal Financial Statement.
Here's How to Add in your EIDL Loan Amount Request
The final step before calculating is to put in your total EIDL loan you're requesting. To be clear, this is your new total amount not your additional total amount. For example, if you're requesting $1M and have already received $500K, you'll put in $1M here.
Want Help Going Through this Calculator and Form?
If you have additional questions or you'd like to speak with someone on our team to help you through the process, you can book one of our limited 1-1 funding spots. You can skip the wait list of thousands with this link and book a time to talk with us.