The Small Business Administration has announced it approved 11,580 loans in the second quarter of 2009, representing a 30% reduction from the 16,490 loans it backed in the same period last year. Value of the loans guaranteed in the April through June period of 2009 was $2.5 billion, compared to the $3.5 billion figure for the quarter ended June 30, 2008.
Used for expansion and to help entrepreneurs buy small businesses, the loans originate from banks and other business lenders, and are facilitated under the SBA's (7) a program by which it acts as guarantor of up to 90% of the loan amount.
Although this is a disappointing sign, and a demonstration that lending activity is still slower than it was last year, the government agency offered encouraging news, pointing out that loans have increased since February of this year. The gains are a consequence of the Federal Stimulus Package, part of the government's Recovery Act, and the aggressive moves taken by the SBA in suspending loan fees and increasing the portion of a loan it will guarantee. One expected impact was to spur activity in the market in which companies and individuals buy and sell small and mid-market businesses.
Also reported is that the secondary market, where a number of lenders sell their loans to other investors to raise capital, is increasing its impact--after months of credit freeze-- with more loans getting purchased in the last few months than was the case at the end of 2008 and early 2009.
Many California-based business lenders also report increased activity, with higher prices offered in the secondary market and funds starting to become more available to business owners and buyers.
|Helpful Resources To Assist In Selling And Buying California Businesses|
|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.
|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.
|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.
|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.
|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.
|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.
|Elizabeth McGovern: Escrow Services - SF Bay Area
McGovern Escrow Services, Inc., is a leading independent escrow company. We are a trusted partner with our clients, assisting them through the tangled bulk sale & liquor license transfer process. We provide attentive, quality & innovative customer service. Phone Elizabeth McGovern at 415-735-3645.
|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.
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