Underwriting
The credit standard every loan must meet before EagleUSD capital is deployed.
Who does what.
EagleUSD holds participations in loans that partner lenders make and service. Dealport finds the deals, and the EagleUSD credit committee approves every one against the same standard.
- Dealport sources
Dealport's platform finds the company, researches the owner and the business, and builds the credit file before a lender is involved.
- A partner lender originates
A partner lender makes the loan and services it offchain: collections, borrower reporting and covenant tests.
- EagleUSD participates
The vault buys a senior secured participation in loans that meet this standard. Interest and principal return to the vault.
- The credit committee decides
Every participation goes to the EagleUSD credit committee, which applies the criteria on this page before capital moves.
Who we lend to.
Established, profitable American businesses. Preferred levels set the target; minimums are hard floors.
| Metric | Preferred | Minimum |
|---|---|---|
| Revenue | $3M or more | $1M |
| EBITDA | $750K or more | $350K |
| EBITDA margin | 15% or more | 10% |
| Operating history | 7 years or more | 3 years |
| Debt-service coverage | 1.50× or more | 1.25× |
| Largest customer | 15% of revenue or less | 25% of revenue |
What we look for
Recurring or contracted revenue, demand that doesn't depend on the economy, pricing power, a broad customer base, clean quality-of-earnings work, experienced management and a credible sponsor.
What we're wary of
Customer or supplier concentration, a shrinking market, thin or volatile margins, aggressive add-backs, weak reporting, and owner dependence without a succession plan.
How loans are structured.
Leverage and loan-to-value are measured against a conservative value, adjusted for cyclicality, customer concentration and collateral quality, not the borrower's asking price.
| Loan or borrower | Max leverage | Max loan-to-value | Condition |
|---|---|---|---|
| Senior cash-flow loan | 2.0–3.5× | 40–55% | Quality-of-earnings EBITDA and a full covenant package |
| Stretch senior | 3.5–4.5× | 50–65% | Only with hard collateral or sponsor support |
| Sponsor-backed borrower | Up to 4.5× | Up to 65% | Equity cushion and sponsor support |
| Founder-owned borrower | Up to 3.5× | Up to 55% | Tighter leverage and closer monitoring |
| Healthcare | 2.0–4.0× | 45–60% | Underwritten to reimbursement risk |
| Collateral | Advance rate | Basis |
|---|---|---|
| Accounts receivable | 80–85% | Eligible receivables |
| Inventory | 50–65% | Net orderly liquidation value |
| Equipment | 70–80% | Forced-liquidation or appraised value |
| Real estate | 60–70% | Appraised value |
| Enterprise value | 40–65% | Conservative enterprise value |
Covenants
Every cash-flow loan carries maintenance covenants: maximum leverage, minimum debt-service coverage, minimum EBITDA and minimum liquidity, tested on a set schedule. No covenant-lite structures.
Guarantees
Personal guarantees are required from founder-owned borrowers and from credits with thin equity or few hard assets. They may be waived for sponsored borrowers with a strong equity cushion and collateral coverage.
Borrower reporting
Monthly financials with receivable and inventory agings, quarterly covenant compliance certificates, and annual audited or reviewed statements.
Pricing
Floating rate, priced by risk at SOFR + 550–900 bps plus 1.5–2.5% in upfront fees.
Portfolio limits.
12–20 positions at full deployment. Capital is never forced out: it waits for loans that meet the standard.
| Exposure | Target | Hard cap |
|---|---|---|
| Single borrower | 7.5% of capital | 10% |
| Single sector | 20% of capital | 25% |
| Single sponsor | 15% of capital | 20% |
If a loan underperforms.
Every loan has a primary repayment path and at least two fallbacks before it funds: refinancing, a sponsor recapitalization, a sale of the business, or repayment from cash flow.
- Performing
Covenants hold and reporting is current. Standard monitoring.
- Watch
Covenant pressure or a forecast slip. Tighter monitoring, amendment or waiver talks, and added structural protection.
- Workout
Default or impairment. The lender enforces on collateral, guarantees and sponsor support to recover capital.
Five questions before every loan.
Return of capital comes before return on capital. The downside is underwritten first.
- 1. How do we get paid back?
What repays the loan, and is it underwritten to normal conditions rather than peak ones?
- 2. What if we're wrong?
In the downside case, do collateral, structure and guarantees still return the capital?
- 3. What's the real loan-to-value?
Measured against a conservative value, not the borrower's asking price.
- 4. Who are we lending to?
Are the owner and sponsor credible, aligned and beyond question on integrity?
- 5. Are we paid for the risk?
Does the coupon plus fees clear the return floor for this risk after expected losses?
Automatic passes
Pre-revenue or going-concern businesses, integrity problems, litigation or regulatory issues that threaten the business, customer concentration that can't be resolved, and financials that can't be verified. We pass on these regardless of yield.
Initial parameters
These are EagleUSD's initial underwriting parameters. Final terms vary by loan and will be confirmed in the protocol documentation before launch.
See the pipeline →