New Goodwill Rules Spur 7A

OK here comes a little more life to the frighteningly comatose 7A world.  For the few, the proud few who do franchise finance and business acquisitions:  Effective October 1, goodwill and intangibles can amount to up to $500,000, with no limit on the percentage of the loan. When intangibles exceed $500,000, the S.B.A. will recommend that banks limit the S.B.A.-backed loan to 75 percent of the purchase price. The remaining 25 percent of the purchase price would have to come from either buyer equity or seller financing.

That’s great news — and there are firms like Commercial Partners of Ilinois who do a great deal of business acquisition business.  The site is www.cpcommerciallending.com.

About Timothy E Thomas

Senior business development officer, CENNTENNIAL LENDING, metro Denver. Responsible for SBA 504 production and conventional small balance commercial lending. Centennial is a credit union service organization owned by 13 credit unions in Colorado and Wyoming. Former SBA-USDA desk manager and Registered Representative for Isaak Bond Investments, Inc., a municipal broker dealer and market maker in SBA and USDA guaranteed loans and pools; taxable and tax exempt municipal bonds and agency securities serving institutional investors for over 33 years, member SIPC, FINRA.
This entry was posted in SBA 7A Trends and Update. Bookmark the permalink.