Total value of SBA loans for acquisition and expansion of small businesses throughout the U.S. has nearly reached $30 billion since mid-February of last year, when the government agency added incentives to its 7(a) and 504 lending programs.
In a recent press release, the SBA said it has received a total of $730 million under the ARRA (American Recovery and Reinvestment Act) passed by Congress on Feb. 17, 2009. The funds have helped the SBA boost lending with incentives to borrowers, such as waiving loan fees, and to lenders, by guaranteeing up to 90% of the loans they provide to small businesses.
The SBA also announced that more than 1,350 institutions which had no loan history dating back to 2007 and before, have made small business loans in the period February 17, 2009 to July 16, 2010.
Many California business brokers contend that the SBA lending programs are critical to the success of business acquisitions throughout the state, by providing the funds needed to complete transactions.
New legislation being considered by Congress, and expected to pass before the House and Senate take their summer break, will provide more funds to the SBA so that it can continue the incentive programs. The agency considers these efforts to be effective in encouraging lending to entrepreneurs wanting to purchase or to expand a business. The SBA predicts the proposed bill, co-sponsored by California Senator Barbara Boxer, will result in about $30 billion in loans through the SBA programs.
WHAT'S YOUR EXPERIENCE?
Have you seen an uptick in SBA backed loans for your transactions or, if you're a broker, your clients' deals?
Do you believe that funds from small business lenders help to make transactions possible?
Would you like to see more lenders participating in small and mid-sized business acquisitions?
Please let me know -- phone me at 866-270-6278
About The Author: Peter Siegel, MBA is the Founder and President of BizBen.com. He is an author, consultant, and advocate on the topic of buying and selling small to mid-sized businesses in the California marketplace. For over 25 years he has assisted business owners/sellers, business brokers, agents, and business buyers. For a FREE consultation on how to best sell or buy a California small business phone him direct at 866-270-6278.
|Helpful Resources To Assist In Selling And Buying California Businesses|
|Willard Michlin, CPA, Certified Fraud Examiner, Due Diligence Services
Willard Michlin, CPA #106752, offers buyers step by step training & assistance in doing Due Diligence Services when they are thinking of making an offer, or are in process of investigating a business purchase. He helps to determine the actual net profit even when there is cash. Call 805-428-2063.
|Janet Carrera - Escrow & Bulk Sale Services - SF Bay Area
Redwood Escrow Services, Inc. is a full service, licensed independent escrow company. We are EAFC Fidelity bonded, fully insured & licensed with the Department of Corporations. Committed to offering our clients the most comprehensive variety of escrow services available. Phone Janet at 510-247-0741.
|Ranvir S. Sandhu, Esq. - Legal Services For Buyers And Sellers
I've worked at top Bay Area law firms and have extensive experience with business entity formation, mergers, dissolutions, conversions, employment matters, including experience in reviewing and negotiating transactional documents such as leases and purchase agreements.
|Helen Yoo: Escrow & Bulk Sale Services - Southern California
New Century Escrow, Inc. is a fully licensed & bonded independent escrow company. Over 20 years combined experience in handling bulk escrow transactions. Multi-lingual staff that speaks your language, including Korean, Chinese, Vietnamese. Call Helen Yoo direct at 626-890-1151.
|Diane Boudreau-Tschetter: Escrow And Bulk Sale Services
California Business Escrow, Inc. is a full service independent escrow company serving all of California and has expertise in a wide range of escrows. Our team prides itself on providing an exceptional escrow experience. For more info phone Diane Boudreau-Tschetter at 888-383-3331 or 209-838-1100.
|Mark Chatow, Esq.: Legal Services For Buying, Selling Businesses
Mark has a broad range of small business purchase & sale experience from analyzing potential acquisition targets to successfully guiding buyers and sellers through the purchase & sale of small businesses. Mark can assist with contracts, negotiations, legal matters, etc. Reach Mark at 949-478-8393.
|Brad Steinberg, Broker - Laundromat Specialists
PWS is the leading laundromat broker in California. Since 1968 PWS has brokered over 2,500 laundromat sales. With over 90 employees dedicated to the coin laundry industry, PWS has 18 licensed agents, a 3 person in-house finance department, 10 service technicians and a 20 person parts department.
|Joe Sandbank, Esq. - Legal Services
I have provided legal counsel to business buyers, sellers and brokers for over 17 years. With prior experience as a business broker and SBA loan officer, Joe brings both a practical and legal approach to all aspects of the business acquisition process.
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