For the first time ever, the SBA will pay the first six months of your loan. New favorable SBA terms make it a great time to buy a business.
While America is in the middle of a pandemic, most small businesses are scrambling to survive. Small businesses are getting creative in their offerings. But some will, unfortunately, die despite the Small Business Administration’s (SBA) best efforts creating the Payment Protection Program (PPP) and expansion of the Economic Injury Disaster Loan (EIDL). As a result, economists are expecting a 20% unemployment rate. But this also means it’s a great time to buy a business.
It’s bleak news for sure.
So why is this a great time to buy a business? Bianca Evans, Business Broker with Transworld Business Advisors makes the case.
When it’s time to sell a business, there are always good reasons why. Owners aging out and failing in health are two reasons that don’t wait for anything including a pandemic and market downturns. The reality is, great businesses are still being listed for sale every day. Are they temporarily dinged up? “Most are,” says Evans, and that’s exactly why it’s a great time to buy. Casual buyers have dropped out of the market as well to focus on their own businesses. As a result, there is less competition for serious buyers.
However, buyers shouldn’t expect huge discounts either. As in the case of hurricanes, and other natural disasters, our recent health crisis will likely be seen as a temporary business disruption. If the business has a historically strong financial performance, it’s likely to return quickly unless the business has suffered so deeply that the supply chain has been interrupted or lost key employees.
By far, the biggest reason to buy a business now is because of the new favorable SBA loan terms. We have never seen terms this great, ever. For Evans, a 14-year veteran business broker, that’s a strong statement. “It wasn’t even this favorable during the 2008 great recession.
She is talking about the popular SBA backed 7(a), 504, and microloan programs. Announced in March, they will be paying the principal, interest, and fees on new loans for 6 months if issued before September 27, 2020.
“I think it provides a wonderful opportunity for entrepreneurs to have a six-month window to roll up their sleeves, get through the inevitable learning curve, and get their new business going without having an immediate loan payment hanging over their head on month 1.”
It’s not as publicized as PPP and EIDL. But it’s a big-time opportunity for someone that has an optimistic view of the future.
To learn more about how you can leverage SBA programs to buy or sell your business visit https://www.myfloridabusinessbroker.com/
About Bianca Evans
Bianca Evans is an experienced business broker based in Jacksonville, Florida. She is a top producer in her field. She has made over 150 transactions since 2006 which makes her among the most seasoned in the area. She is a Certified Business Intermediary (CBI), a Certified M&A Professional (CM & AP), a Board Certified Intermediary (BCI) and has her B.S. degree from the University of Florida.
Other notable accolades and achievements:
•The Million Dollar Plus Award 2008, through 2019
•Dealmaker Award top 3% in the state for completed deals 2018
-Most dollars sold in North Florida in 2018
•Sold an array of industries including manufacturing, wholesale/distribution, service, retail, restaurants, professional offices, and more.
•24 years of Sales Experience
She maintains her professional networks by participating in a variety of associations including the International Business Brokers Association (IBBA) and the Business Brokers of Florida (BBF).
One interesting fact about Bianca is that she used to be a business owner herself! She has been on both sides of the transaction when she purchased and later sold that same business. She finds that perspective invaluable when relating to her clients and balancing the many details and emotions.
She is licensed in Georgia and Florida and speaks fluent German.
To reach Bianca, email: firstname.lastname@example.org or visit her website https://www.myfloridabusinessbroker.com/