Credit Analysis & Underwriting Series: Debt Service Coverage Calculations in Underwriting

Feb 27, 2018 03:00pm -
Feb 27, 2018 04:30pm
As we transition to a new online membership platform, CBAO will not be processing online orders from September 21-30. Please call our office at (614) 846.8124 to register for a webinar or an event. Thank you!

A list of upcoming events is presented below:

Event Description

There’s more than one method for computing the debt service coverage ratio (DSCR) for operating entities.  Since these methods can lead to conflicting results, even when based on the same data, several questions arise.  Which DSCR calculation method should be used, EBITDA or UCA?  Should the primary or global DSCR result be used for underwriting?  Should there be a provision for maintenance capital expenditures?  What about 179 depreciation expense?  Should a deduction for taxes and living expenses be included?  How should shareholder distributions and loans be handled?  What should be done with missing debt service schedules?  Regulators say that financial institutions should use a “forward-looking” analysis.  What does this entail?  How does stress testing impact DSCR underwriting?  This presentation will address all these issues.


  • Relevant regulations and SBA requirements
  • Approaches to calculating debt service coverage:  EBITDA, UCA cash flow, and free cash flow 
  • Add-backs, including Section 179 depreciation expense and net operating loss carry-forward
  • Other considerations, including rent payments, providing for tax liability, living expenses, and capital expenditures (CapEx)
  • Schedule E Supplemental Income and Loss
  • Regulatory expectations
  • Stress testing debt service coverage – two different components 
  • Repayment support – guarantor support analysis
  • Debt service coverage for CRE loans

Take-Away Toolkit:

  • Employee training log
  • Quiz you can administer to measure staff learning and a separate answer key


Attendance verification for CE credits provided upon request.

Who Should Attend?

This informative session will benefit anyone involved with underwriting or approving commercial loans, including executive management on the loan committee, commercial loan officers, credit analysts, commercial loan underwriters, branch managers with commercial lending authority, loan review staff, and auditors.

Registration Options:

If you are having issues with registering online, please contact CBAO's Education & Training Coordinator, Lianne Simeone, (614) 610-1877.

Event Type:Webinar &/or On-Demand Link/CD
Early registration ends on Jan 22, 2018.
Regular registration starts on Jan 23, 2018 and ends on Feb 27, 2018.
Late registration starts on Feb 28, 2018.
(GMT-05:00) Eastern Time (US & Canada)


Registration Fees
Fee TypeEarlyRegularLate
 Live Webinar
Member Fee: $265.00$265.00$290.00
Non-Member Fee: $400.00$400.00$425.00
 Additional Hookups
Member Fee: $175.00$175.00$175.00
Non-Member Fee: $260.00$260.00$260.00
 Recorded Webinar + Free Digital Download
Member Fee: $345.00$345.00$345.00
Non-Member Fee: $490.00$490.00$490.00
 Both Live Webinar and Recorded Webinar + Free Digital Download
Member Fee: $395.00$395.00$420.00
Non-Member Fee: $600.00$600.00$625.00