What is a 5‑liner for SBA deals?
A 5‑liner is a short, standardized deal summary that lets me give you a real underwriting view early — GO / FIX / NO — without you building a full package first.
It covers: Deal Intent, Funds Flow, Sponsor Snapshot, Repayment Story, and Collateral & Conviction.
If the 5‑liner is clear, you’ll get fast direction and avoid surprises later.

What should be included in “Funds Flow” and “Repayment Story”?
Funds Flow = Sources & Uses (high level).
Sources: SBA loan amount, equity amount + source, seller note (terms/standby), any other financing.
Uses: purchase price (asset/stock), real estate (if any), payoffs (if refi), working capital, fees/closing costs.
Repayment Story = what pays the debt.
Include: recent revenue + EBITDA/SDE, key addbacks, estimated debt service, DSCR (standalone + global if relevant), and any major seasonality or concentration.

How fast do you respond with GO/FIX/NO?
Typically within 24–48 business hours when the 5‑liner is clean and complete.
Same‑day is often possible for straightforward deals.
Complex structures may take longer, but you’ll still get a quick first read and what I need next.
Speed comes from clarity.

What documents help speed up a credit read?
A 5‑liner is enough to start, but the fastest decisions usually include:
Last 2–3 years tax returns (seller for acquisitions; borrower for refis)
Trailing 12‑month P&L (and YTD if available)
Debt schedule (rates/terms/payments)
Sponsor resume(s) / experience summary
PFS + liquidity proof
LOI / purchase agreement (if under LOI)
If real estate is involved: property details/lease terms and any appraisal/Phase I status (if available).

What addbacks are typically considered credible?
Credible addbacks are specific, provable, and truly non‑recurring (or clearly normalizable).
Common examples (when supported): interest, depreciation/amortization, owner comp normalization, one‑time professional fees, documented one‑time repairs, rent normalization.
Weak addbacks: “misc” items, recurring expenses labeled “one‑time,” and future improvements with no proof.
Rule: if it can’t be explained and proven, it won’t carry full weight.

How should equity injection be documented?
Equity is one of the biggest deal slowdowns — document it cleanly up front.
Best practice: bank statements showing funds, a clear transfer trail, and proof of payment (wire/canceled check).
If funds came from a sale, gift, retirement, or other source, include the supporting documents (settlement statement, gift letter + donor ability, retirement liquidation/loan paperwork, etc.).
Underwriting needs the amount and the source trail.

What deal types are best suited (acquisition, refi, OOCRE)?
Best fit: business acquisitions (especially with real estate), owner‑occupied CRE purchases/refis, and SBA refinances where eligibility/benefit‑to‑borrower must be clean.
Also a strong fit for franchise acquisitions/resales where structure matters.
If you’re unsure, send the 5‑liner — I’ll tell you quickly if it’s a GO or what needs to change.

Can you review deals before LOI / before full packaging?
Yes — and that’s often the best time to do it.
I can review pre‑LOI or early‑stage deals to help you size it, structure it, and identify credit landmines before you waste time packaging.
Even a rough summary is enough to start — send what you have and I’ll respond with GO/FIX/NO direction.

Have a deal you’re not sure about?
Email a 5‑liner to danny.smith@readycapital.com with the subject:
5‑Liner – [Acquisition/Refi/Expansion] – [Industry] – $[Loan Amt]
I’ll reply with GO / FIX / NO and structure guidance.