While the number of small and mid-sized business opportunity sales in California last month (1,163) lagged behind the March 2009 total (1356), it's encouraging to notice that this year’s figure is ahead of the count for the first quarter of last year. Month to date sales in the state currently stand at 3,239 vs. 3,180 deals closed through March of 2009.
It’s not surprising that we see somewhat contradictory results. The pattern of positive, mixed with negative indicators is seen throughout the economy--in consumer confidence reports and statistics generated in the housing market, for example.
One factor inhibiting robust small business sales activity is the inconsistency in availability of cash needed to help fund business purchases. The flow of money from business lenders has been a bit sporadic as a result of the interruptions in Federal funding used to support the popular incentives tacked on to the SBA 7(a) and 504 lending programs.
As has been reported here, when Federal money allocated to the SBA programs has run out, the agency has had to go back to Congress for more. That has occurred a couple of times since the original funding was granted early in 2009. The tap is open right now and it allows the SBA to guarantee business loans up to 90%, and to waive the application fees usually paid by borrowers.
Of course California’s entrepreneurs are pretty resourceful and many are finding ways to complete their business opportunity deals without reliance on borrowed funds.
Most of the state’s largest counties showed a decline in sales compared to March of last year. Los Angeles County recorded 306 deals last month and 373 during the same period last year. Orange County activity was down to 111 transactions from the March 2009 total of 123. San Francisco’s decline was substantial--to 22 deals from the 45 posted last March.
Riverside County’s business opportunity sales, however, reached 54 for the month, up dramatically from 22 deals in March 2009.
Totals for the state, by county, are as follows:
Alameda: 61, Amador: 1, Butte: 8, Calaveras: 3, Contra Costa: 23, El Dorado: 5, Fresno: 36, Humboldt: 2, Imperial: 3, Kern: 29, Kings: 1, Los Angeles: 306, Madera: 1, Marin: 9, Merced: 6, Mono: 1, Monterey: 14, Napa: 4, Orange: 111, Placer: 6, Riverside: 54, Sacramento: 39, San Bernardino: 67, San Diego: 104, San Francisco: 22, San Joaquin: 12, San Luis Obispo: 9, San Mateo: 10, Santa Barbara: 14, Santa Clara: 59, Santa Cruz: 16, Shasta: 11, Solano: 12, Sonoma: 22, Stanislaus: 23, Sutter: 1, Tehama: 5, Tulare: 12, Ventura: 32, Yolo: 9
About the Author: Founder and CEO of BizBen.com - Businesses for Sale in California, Peter Siegel, MBA, has been a consultant, for 25 years, to people who plan to sell or to purchase a business opportunity.
Posted on April 1, 2010 | 
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