Good news for the small business community!
Much of what we have read about the CARES Act has been focused around the Paycheck Protection Program (PPP) which is a 349 billion fund created at helping small businesses. A key provision of the Small Business Debt Relief Program addresses current and new loans, specifically 7(a), 504, and micro-loans. This program will provide relief to small businesses with non-disaster SBA loans already in place and to new borrowers who take out loans before September 27, 2020. For those who qualify, the SBA will automatically pay the principal, interest and fees for a period of six months which started in late March.
We believe that if you are a current small business owner or an individual who has always wanted to be their own boss, now is the time to consider a business acquisition. SBA backed loans, specifically 7(a), represent the vast majority of how our buyers finance business acquisitions for deals below $5.0mm. With most financing packages already including ample working capital, plus 6 months of covered loan payments, interest and fees, there may never be a better time to buy a business than now!
*At this time the SBA and the government have been updating the rules and requirements on a weekly basis. This is a fluid process so we recommend you check with your lender and SBA website for most up to date information.
