America’s SBDC Blog

A “Forbes 100 Best Websites for Entrepreneurs”

Second Stimulus Eases Lending Terms, Creating a Buyer’s Market

February 16, 2021
By FranNet – 

The recently signed second stimulus package includes several provisions that should make it easier than ever for qualified buyers to access capital through the Small Business Administration (SBA) for starting a new business. We spoke with our friends at Benetrends Financial regarding the details of the new package and the impact it will have on entrepreneurs considering owning a business.

Eric Schechterman, Chief Development Officer at Benetrends Financial, said, “While the lending environment continues to rebound and lenders continue to adapt what they are looking for from borrowers these provisions should have a huge impact in 2021.” Not to be confused with specific Paycheck Protection Program (PPP) loan details, here is the information buyers need to know about enhanced borrowing opportunities with the SBA: Click To Tweet (more…)

Business for Sale Market During COVID-19: A Paradox of Unique Opportunity and Uncertainty

October 27, 2020

By: BizBuySell –

BizBuy Sell Confidence Index
(BizBuySell Confidence Index — click image for larger view)

New data from BizBuySell’s small business confidence survey and recent business for sale transactions reflects a market driven by opportunity seekers and business owners, either well-positioned to profit or forced to exit.

BizBuySell’s 3rd quarter 2020 Insight Report, a nationally recognized economic indicator which aggregates statistics from business-for-sale transactions, shows a steady upward trend in sales since the pandemic hit. In April, transactions showed a 51% year-over-year decline, shrinking the deficit to 21% in July, and then just 5% fewer deals in September.

The catalyst behind the resurgence appears demand driven. According to BizBuySell’s 2020 Small Business Confidence Study, buyer confidence reached a record high of 60 compared to 53 a year ago. (more…)

New PPP Loan Forgiveness Application 3508S: Will It Help You?

October 20, 2020

By Gerri Detweiler –

If you took out a Paycheck Protection Program loan for $50,000 or less, you may be able to use a new application — Form 3508S — to obtain forgiveness. This application does not make forgiveness automatic, but it will make it easier for some borrowers to qualify for forgiveness.

The big change here is that the application does not require borrowers to calculate a reduction in forgiveness if they reduced employee salaries or wages. The SBA, in the Interim Final Rule announcing this form, notes that this change is likely to have a minimal impact on overall forgiveness:

“There are approximately 3.57 million outstanding PPP loans of $50,000 or less, totaling approximately $62 billion of the $525 billion in PPP loans. Approximately 1.71 million PPP loans of $50,000 or less were made to businesses that reported having zero employees (presumably not counting the owner as an employee) or one employee. To the extent that these businesses have no employees other than the owner… they are not affected by these exemptions.” (more…)

How to Pay Back an EIDL or PPP Loan

September 22, 2020

By Gerri Detweiler –

If your business received an Economic Injury Disaster Loan (EIDL) or Paycheck Protection Program (PPP) loan, you may have determined it isn’t a good fit for your small business for any number of reasons:

You just wanted the EIDL grant and not an EIDL loan

You didn’t understand the loan terms when you applied

You can’t use the EIDL funds or PPP funds the way you hoped

You don’t think most of your PPP loan will be eligible for forgiveness

You aren’t sure your business will survive to be able to repay a loan

(more…)