Posts tagged SBA Business Acquisitions
Goodwill in Relation to SBA 7(a) Loans

Goodwill is an intangible asset that arises when a new owner purchases a business. Goodwill only arises when the new owner purchases the business for more than the tangible and intangible assets, minus the business’s liabilities. In general, SBA loans limit the amount of goodwill involved in a business acquisition, as the more goodwill involved in a transaction, the riskier it is for both the lender and the borrower.

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Can SBA Loans Be Used for Real Estate Investment?

SBA loans cannot be used for businesses in which the primary source of income is real estate investment. In fact, SBA loans can only fund real estate that is owner-occupied, and will be used primarily by the business that is taking out the loan. However, in most cases, a business only needs to occupy 51% of the property it has purchased.

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Can You Get a Gym Equipment Loan Through the Small Business Administration?

Gyms and health clubs across the U.S. produced approximately $80 billion in revenue in 2017 alone. And, if you’re a gym or health club owner, you might be looking to get a gym equipment loan through the SBA. Fortunately, the SBA 7(a) loan program, as well as the SBA 7(a) Express Loan both permit borrowers to finance the purchase of gym equipment— which could make them a great choice for your business’s needs.

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New SBA Loan Rules Make It Easier for Borrowers to Acquire Businesses

On January 1st, 2018, the SBA enacted a series of new rules making it easier for individuals to use SBA 7(a) loans to purchase a business. Specifically, the SBA modified its Standard Operating Procedures (SOPs), including SOP 50 10 5(J), which reduces equity requirements for business acquisitions and makes it easier for for borrowers to get funding for franchises.

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