Are you one of the many Americans who has dreamed of owning your own business? The governmental organization called the Small Business Administration (SBA) (sba.gov) exists to deliver millions of loans, loan guarantees, contracts, counseling sessions and other forms of assistance to small businesses.
April 29-May 5 was National Small Business Week, a week where the SBA recognizes outstanding entrepreneurs and small business owners from all across the 50 states and U.S. territories. As we here at CBI Team Fort Smith-River Valley, a small business, celebrate National Small Business Week, we'd like to make you aware of some recent changes the SBA has made to its loan guaranty programs that could greatly benefit those of you who have considered owning your own business.
* All lending organizations have their own criteria, which might change the below general guidelines.
1. New Rule: Lower equity requirements for acquisition loans.
How it benefits the buyer: Only 10% equity must come from the buyer and/or a seller note, down from 20-25%.
2. New Rule: Seller standby rule is extended to the life of the loan.
How it benefits the buyer: Previously the standby extended only two years but is now considered full (life of the loan) standby, and the rule only pertains to the equity portion of the deal.
3. New Rule: New SBA franchise directory listing franchises eligible for SBA financial assistance.
How it benefits the buyer: Franchise purchases were previously ineligible for SBA assistance.
To read more about the new SBA changes and other reasons for buyers to be optimistic in 2018, read the full article here.
IF YOU'RE LOOKING FOR A NEW BUSINESS OPPORTUNITY IN ARKANSAS OR OKLAHOMA, OR FOR MORE INFORMATION ON SELLING A BUSINESS, BUYING A BUSINESS, OR TO SCHEDULE AN INFORMATIONAL MEETING, COMPLETE THE FORM BELOW, CALL 479.784.9522 OR EMAIL MARK.KINCANNON@CBITEAM.COM.