Lenders typically require a minimum Debt Service Coverage Ratio (DSCR) ranging from 1.0x to 1.5x. Falling below your required threshold triggers a covenant violation—putting the school at the mercy of the lender, requiring formal waivers, adding legal costs, and potentially triggering higher interest rates. Board members should include DSCR as a standard metric in every Treasurer's Report to ensure the school generates enough cash to safeguard its long-term financing.