SBA financing can minimize the risks for business sellers

One of the concerns a business owner has always faced when selling their business is the fact that many buyers prefer to make a down payment amount equal to about one year's annual net cash flow. They see this as a risk because they will need to carry a note for the remainder of the total sales price. Besides seller financing, historically there have been very few programs available to finance the acquisition of a business. This has started to change. The U.S. Small Business Administration has emerged as an excellent source of long-term funding. Although the SBA 7(a) loan program has been meeting the borrowing needs of businesses for almost five decades, it traditionally has been used to finance working capital, equipment acquisition, debt refinance and the purchase or refinance of real estate occupied by the business.... [read full story]