SOP 50 10 7.1 Compliant Executive Summary, Management Bio, Market Analysis & Debt Service Justification
| Business Plan Section | SBA Underwriter Audit Focus | Required Quantitative Proof | Red Flag to Avoid |
|---|---|---|---|
| 1. Executive Summary & Loan Request | Exact Sources & Uses of Funds matching to the dollar | 10%–20% Borrower Equity Injection verification | Vague 'Working Capital' > 25% of total loan |
| 2. Management Experience | Direct industry operating track record (2+ years) | Resume + Past P&L managed or transferable license | Passive investor ownership without operational manager |
| 3. NAICS Margin Justification | Gross Margin & Payroll % within RMA benchmark quartile | Supplier quotes, lease LOI, and staffing schedule | Projecting >40% net EBITDA margin in Year 1 |
| 4. DSCR Stress-Test Narrative | Ability to maintain >= 1.25x DSCR under -15% revenue dip | Break-even monthly revenue table & fixed-cost cushion | Ignoring Prime + 2.75% variable rate sensitivity |