San Ramon, CA (PRWEB) March 15, 2006
There has been approximately a 20% increase in SBA small business loans secured by buyers of small and mid-sized businesses in the past two years, and according to Peter Siegel of BizBuyFinancing.com, this will stimulate the economy and create more jobs. According to Mr. Siegel, this increase in SBA loans for business purchases is due to more small business owners unwilling to finance an entire business sale themselves.
"What we are really seeing here is that more and more individuals who are selling their small or mid-sized business are unwilling to take a promissory note with them,” said Mr. Siegel. He went on to say "these owners want to take the entire sales price in cash when they sell their business and have the buyer utilize SBA loan financing to secure the balance of the funds."
Mr. Siegel is in a unique position to comment on this, as he is Founder of BizBuyFinancing.com, a niche SBA loan brokerage and consulting company which has over 10 years of experience in helping entrepreneurs secure SBA loans to purchase small & mid-sized businesses. In this timeframe, BizBuyFinancing.com has helped secure on average around $10-$20 million dollars in SBA loans per month from lenders for business buyers.
A potential borrower needs to put down approximately 20% of the sales price, and have some related work experience to the business they are looking to purchase. In addition to these factors, there are approximately 28 other factors that are taken into consideration whether a potential business buyer is approved for this type of SBA loan.
"What we are also seeing" Mr. Siegel stated "is that new entrepreneurs are unable to finance the entire business purchase themselves, and are utilizing more SBA financing at this time. This helps the economy by assisting more individuals to purchase businesses and take risks that they might not be able to usually take without this type of financing. It’s these risks that stimulate the economy and create new jobs."
"Overall, this trend towards using SBA loans is smart for buyers and sellers. The seller gets all cash and can start a new business or simply retire and the buyer is able to enter into a new business that he might not usually be able to enter"
Founded in 1996, BizBuyFinancing.com is dedicated to helping entrepreneurs secure loans from $200,000 - $3,000,000 and purchase small and mid-sized businesses. In addition to assisting business buyers secure SBA loans, BizBuyFinancing.com holds free online business webinars showing potential business owners how to secure SBA loans to finance business purchases.
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