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.