Every listing on Bizvetting is run through the same standardized SBA 7(a) underwriting model, using the same assumptions, before it's graded. This page explains exactly what that means so you can decide how much weight to put on a grade.

The underwriting assumptions

Every deal uses the same standardized inputs, regardless of what any individual seller or broker assumes:

Using fixed assumptions rather than each seller's or broker's own numbers is what makes grades comparable to each other. Your actual terms with a specific lender may differ — this is a screening model, not a loan approval.

What gets calculated

  1. SDE multiple — asking price ÷ reported SDE. See our SDE multiple guide.
  2. Annual debt service — computed from the price, standardized down payment, note rate, and term.
  3. DSCR as-stated — reported SDE ÷ annual debt service.
  4. DSCR stressed — SDE after a 20% haircut ÷ annual debt service. See our DSCR guide.
  5. Price move to hit 1.25x stressed — how far the asking price would need to move for stressed DSCR to clear the standard 1.25x lender comfort threshold.

How the A/B/C grade is assigned

Grades are assigned by stressed DSCR relative to the current batch of listings, not against a fixed absolute cutoff. A stressed DSCR that grades as a B today could grade as an A or C in a different cycle, depending on what the rest of the batch looks like. This is deliberate: it reflects relative deal quality within what's actually on the market right now, rather than an arbitrary fixed line that drifts in and out of meaningfulness as market conditions shift.

What's free and what's gated

Category, general location, price band, SDE multiple, and both DSCR figures are free and visible on every listing without signing up. Exact business name and location, broker contact, exact asking price, and the target-offer calculator are reserved for members. This split exists so anyone can screen the full market for free — membership is for people ready to act on a specific deal.

Sponsored placements are structurally separate from grading

SBA lenders can pay for placement in the sponsored module shown alongside listings. That placement never affects which grade a listing receives or where it ranks — grading is computed independently, before any sponsor data is applied, and sponsor cards are visually and structurally separate from the grade itself.

What this isn't

This is a screening tool, not a substitute for actual lender underwriting or a CPA-reviewed quality of earnings review. SDE figures come from public listing data and reflect each seller's own characterization of their earnings — Bizvetting doesn't independently verify or audit them. Use grades to narrow a list of deals worth deeper diligence, not as a final answer on whether to buy.

See the methodology applied across every current listing.

See graded HVAC businesses →