Feb 27

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

Registration Options & Pricing

Please select your membership status.

Recorded Webinar Includes

  • Recording of the Live Webinar
  • Available 6 business days following Live date
  • Available for 6 months following Live
  • Handout and Take-Away Toolkit
  • Available on Desktop, Mobile & Tablet
  • Free Digital Download, yours to keep
  • Share link with anyone at your bank
  • Presenter’s contact info for follow-up

12:00 pm – 1:30 pm PT
1:00 pm – 2:30 pm MT
2:00 pm – 3:30 pm CT
3:00 pm – 4:30 pm ET

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.

Continuing Education:   Attendance verification for CE credits upon request

Save with this series!


  • 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

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


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.

NOTE:  All materials are subject to copyright. Transmission, retransmission, or republishing of any webinar to other institutions or those not employed by your financial institution is prohibited. Print materials may be copied for eligible participants only.


Young & Associates, Inc.
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