SBA 7A BUSINESS ACQUISITION FINANCING IN 2021
If you are looking to acquire a company and need financing of $5 million or less, right now is a great time to utilize the SBA 7A loan program to fund your acquisition. Due to provisions in the stimulus act, there are three benefits in place right now you can take advantage of. They include the following:
1) The SBA Guarantee fees are being waived on all new loan originations through[redacted]This can save upwards of 3.5% of the guaranteed portion of the loan.
2) The SBA is going to make your first six months of payments for all loans funded and fully advanced by[redacted], with payments made up to $9,000 in principal and interest per month. That is in essence up to $54,000 in additional free money if your payment matches or exceeds $9,000 per month.
3) The SBA has increased their government guarantee to 90% of the loan amount through[redacted]Although this is not a direct benefit, it does provide an indirect benefit because it means SBA lenders are going to be more likely to push deals forward in the current market even if there are some minor issues.
If you are thinking about buying a business and want to discuss financing options, please give me a call at[redacted]or email me at [redacted] We can work to help you structure your deal up front, get you a pre-approval letter, and help you find the best financing options that will meet your needs.