Global Cash Flow Calculator for SBA & owner-occupied CRE
Roll up cash flow across operating companies, real estate entities, and guarantors. Compute global debt service coverage in one place — the analysis behind every SBA and owner-occupied CRE deal.
Borrowing relationship
Add every entity and guarantor that contributes to repayment.
EBITDA less taxes, capex, and distributions.
NOI net of property-level debt service if free-and-clear.
W-2 income plus distributions, less personal debt and living expenses.
Strong global coverage across the borrowing relationship.
Definition
What is global cash flow analysis?
Global cash flow analysis combines the cash flow of a borrower, all related entities, and all personal guarantors into a single view of repayment capacity. Instead of asking "can this entity cover its own debt service?", global analysis asks "can the entire relationship cover all of its debt?"
It is the standard underwriting approach for SBA loans, owner-occupied CRE, and any deal where the borrower's repayment depends on multiple sources of income — operating profits, distributions from related entities, real estate cash flow, and personal guarantor income.
Global DSCR = Combined cash flow ÷ Combined debt service. Most banks underwrite to a minimum global DSCR of 1.15x to 1.25x. SBA SOP and most community bank policies set the threshold at 1.25x.
Layers
What goes into each layer of global cash flow
Operating company cash flow
Start with EBITDA from the business tax return or financial statements. Subtract taxes paid, owner distributions taken out, and a reserve for capital expenditures. The result is cash flow available for debt service. Add back any non-cash items like depreciation and amortization that were deducted from net income.
Real estate entity cash flow
Use property-level NOI (gross income minus operating expenses, property taxes, and insurance). If the real estate already carries debt, include that debt service in global debt service — and use the property's free cash flow after that debt service in global cash flow. If the real estate is free-and-clear, the full NOI flows through.
Guarantor personal cash flow
Sum W-2 wages, interest and dividends, and K-1 distributions from entities not already counted. Subtract personal debt service (mortgage, auto, student loans, credit cards) and personal living expenses. The remainder is what's available to support the business obligation.
Worked Example
How to compute global cash flow — a working example
A community bank is underwriting an owner-occupied CRE loan. The borrower owns 100% of an HVAC operating company and 100% of the LLC that holds the building.
Operating Co. generates $350,000 of cash flow available for debt service after taxes, distributions, and capex. It carries $75,000 of existing debt service.
Holding Co. (the building) generates $180,000 of NOI. The proposed loan adds $120,000 of debt service, and there is no other property debt.
The owner-guarantor draws $240,000 in W-2 wages and distributions (excluding K-1s already counted at the entity level). Personal debt service totals $48,000 and living expenses are $90,000.
Global cash flow = $350,000 + $180,000 + ($240,000 − $90,000) = $680,000.
Global debt service = $75,000 + $120,000 + $48,000 = $243,000.
Global DSCR = $680,000 ÷ $243,000 = 2.80x — well above the 1.25x policy minimum.
Questions & Answers
Global cash flow — frequently asked questions
What is global cash flow analysis?
Global cash flow analysis combines the cash flow of a borrower, all related entities, and all guarantors to measure whether the entire borrowing relationship can service its total debt. It is the standard underwriting approach for SBA loans, owner-occupied CRE, and any deal where the borrower's repayment depends on multiple sources of income.
How do you calculate global cash flow?
Global cash flow is the sum of: operating company cash flow available for debt service (typically EBITDA less taxes, distributions, and capex), real estate entity NOI (less property-level debt service if you measure free-and-clear), and guarantor personal cash flow (W-2 income plus K-1 distributions less personal living expenses). The total is divided by global debt service — the sum of all annual P&I obligations across the relationship — to produce the global DSCR.
When is global cash flow required?
Global cash flow is required for SBA 7(a) and 504 loans, owner-occupied commercial real estate, related-entity deals where one entity's repayment depends on cash from another, and most deals with personal guarantees from owners with material outside income. Many regulators specifically expect global analysis for related-entity exposure.
What is K-1 tracing?
K-1 tracing is the process of following ownership distributions through tiered or related entities to make sure income and debt service are not double-counted. If a guarantor receives a $200,000 K-1 from an LLC, and that LLC's cash flow is already included in the global analysis, you cannot also credit the $200,000 distribution to the guarantor — that double-counts the same cash.
What is a good global DSCR?
Most lenders underwrite to a minimum global DSCR of 1.15x to 1.25x. SBA SOP and most community bank policies set the threshold at 1.25x. Anything below 1.15x typically requires either restructuring, additional guarantees, or a decline.
What is global debt service?
Global debt service is the total annual principal and interest on every debt obligation in the borrowing relationship — the borrower's business debt, related-entity debt, real estate debt, the proposed loan, and the guarantors' personal debt service (mortgages, student loans, auto loans, credit cards). It is the denominator in global DSCR.
Should global cash flow include guarantor living expenses?
Yes — most banks deduct a personal living expense allowance from guarantor income before adding it to global cash flow. Common approaches include using the guarantor's actual personal financial statement, a percentage of W-2 income (often 30% to 50%), or an IRS National Standard. Without this deduction, global cash flow overstates available repayment.
How does global cash flow work for SBA 7(a) loans?
SBA 7(a) underwriting requires a global cash flow analysis covering the operating business, any affiliate businesses, real estate entities, and all 20%+ guarantors. The lender typically pulls business tax returns, K-1s, and personal tax returns, traces ownership and distributions, and computes a global DSCR — most commonly to a 1.25x minimum, though SBA SOP language is principles-based.
How does AI automate global cash flow analysis?
An AI underwriting platform reads tax returns, financial statements, K-1s, and personal financials, identifies entity relationships and ownership percentages, traces distributions across tiered entities to avoid double-counting, computes per-entity cash flow, and rolls up to a global DSCR with full source citations. Aloan does this end-to-end and generates the credit memo.
Related
Related calculators & resources
Single-entity DSCR with stress testing.
CRE property-level metrics.
RAROC pricing for committee.
How Aloan automates multi-entity rollups.
SBA 7(a) and 504 with multi-guarantor cash flow.
Spread 1040 / 1120 / 1120S / 1065 / K-1 / Schedule E.
Aloan automates global cash flow — including K-1 tracing
Reads tax returns and K-1s, traces tiered ownership, computes per-entity cash flow, rolls up to global DSCR, generates the credit memo. Every figure cites the source.