Sunbelt Completes Sale of Medical Products Companies

Sunbelt Completes Sale of Medical Products Companies

Sunbelt Completes Sale of Medical Products Companies

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We are pleased to announce the sale of two related companies. One is a 40-year-old manufacturer of medical lotions, the other is a research company focused on medical lotions and compounds.

The products are manufactured in an FDA regulated facility in Houston, Texas.

The company is in its 3rd generation of family management but the time had come to bring in outside investment. The current leader, the grandson of the founder, will remain in an executive position with the new ownership.

This deal was complex due to the regulatory requirements of the FDA, the substantial intellectual property that had accumulated over the businesses 40-year history and the always challenging dynamics of multi-generational ownership.

 

 

 

Small Business Administration (SBA) Lending to Buy a Business

Small Business Administration (SBA) Lending to Buy a Business

The Small Business Administration (SBA) continues to be the primary source of financing when buying a business in Texas.

Technically speaking the Small Business Administration loan is not a loan but actually a guarantee to a bank who actually provides the loan. It’s commonly referred to as an SBA loan due to the standard regulations imposed on banks who offer loans under the SBA program ( known as a 7A or 504 loan).

In today’s market an SBA Loan for the purchase of a business that doesn’t have real estate as part of the sale ( the business is typically located in a leased space) will generally have the following terms:

  • 10 year amortization
  • Interest rate of 2.75% over the prime lending rate, adjusted quarterly
  • Buyer down payment equal to 15 – 25% of total business purchase price
  • Bank will likely add adequate working capital to the loan for business operations

The bank will have substantial due diligence requirements. Both the buyer (borrower) and the business (seller) must be able to pass the banks due diligence requirements. The bank will want all business financial information to be correctly stated on the business tax returns.

The bank will also want the buyer to me certain requirements regarding credit score, no problems with student loan payments, no issues with child support or alimony payments, clear history of any criminal issues.

A very important element of getting approved for an SBA backed loan is the banks comfort level with the buyers ability to succeed in the business they buy. A core element is known as buyer’s “applicable skills”. Basically this means what in the buyer’s experience can be applied to the new business.

Most small businesses that sell for under $1,000,000 are purchased by individuals who will own and operate the business on a day-to-day basis. These SBA Loans are rarely used for “passive” investments.

Sale of Specialized Early Childhood Education Business

Sale of Specialized Early Childhood Education Business

Sunbelt Business Brokers is pleased to announce the sale of a Houston,Texas area early childhood education and behavior management business. The business specializes in management of children with autism with the goal of main streaming the children into the conventional education system.

The business was purchased by a multi-unit childcare education company located in The Woodlands, Texas.

Sunbelt Business Brokers has significant experience in the sale of early childhood education and daycare businesses.

 

SBA Announces New Measures to Help Get Small Business Loans Into the Hands of Veterans

SBA Announces New Measures to Help Get Small Business Loans Into the Hands of Veterans

Release Date: 

Friday, November 8, 2013
Release Number:
13-53
Contact:
Dennis E. Byrne (202) 205-6567
Internet Address:

WASHINGTON – The U.S Small Business Administration (SBA) today announced new measures to help get small business loans into the hands of veterans by setting the borrower upfront fee to zero for all veteran loans authorized under the SBA Express program up to $350,000.  This initiative will start on January 1 and continue through the end of the fiscal year.

“Our nation’s veterans are highly-skilled and highly-trained leaders in their communities,” said Acting SBA Administrator Jeanne Hulit.  “This initiative will set fees to zero for SBA Express loans to veterans up to $350,000, and is part of SBA’s broader efforts to make sure that veterans have the tools they need to start and grow a business.  As we honor our veterans and thank them for their service and sacrifice, let’s continue to identify ways to support them when they come home.”

Of all SBA loans that go to veterans, 73 percent are $350,000 and below.  The SBA Express Loan Program, which supports loans under $350,000, is SBA’s most popular loan delivery method, with nearly 60 percent of all 7(a) loans over the past decade being authorized through the program. Since the program’s inception, it has also been one of the most popular delivery methods for getting capital into the hands of veteran borrowers.

Building on SBA’s recent announcement that for the current fiscal year, fees on loans for $150,000 and under are set to zero, this policy announcement means that veteran borrowers will no longer have to pay an upfront fee for any loan up to $350,000 under the SBA Express program.  This new initiative will go into effect January 1 and extend for the duration of the fiscal year.  This will make the loans cheaper for the borrower, another way SBA is looking to serve small business owners as they look for ways to access capital.

Today’s announcement comes during SBA’s National Veterans Small Business Week, an initiative on the part of the U.S. Small Business Administration to reach out to veteran entrepreneurs and business owners.  During Veterans Small Business Week, SBA staff all across the country have been working with partner organizations on educational efforts, mentoring, and trainings to make sure veterans have the tools they need to start or grow their business.

SBA provides veterans access to business counseling and training, capital and business development opportunities through government contracts. In FY 2013, SBA supported $1.86 billion in loans for 3,094 veteran-owned small businesses.   And since 2009, the dollar amount of SBA lending support to veteran-owned firms has nearly doubled.

For more information about these and other SBA programs, visit the SBA website at www.sba.gov, or contact your local SBA field office.  You can find contact information for your local SBA office at http://www.sba.gov/localresources/index.html.

Click Here for Information on SBA Small Business Loans available

Check here for Businesses Available 

Best Basic Accounting Book for Small Business Owners and Buyers

Best Basic Accounting Book for Small Business Owners and Buyers

I found this basic accounting guide and it’s the best I’ve seen at presenting basic small business accounting in an easy to follow manner.

This book is under 100 pages and under $10…if you’re a small business owner this could be the best $10 you ever spent.

Accounting Made Simple – Understanding Accounting Principles in Less Than 100 Pages

If you are considering buying a business or you own a small business and hope to sell it one day take the time to review this book and implement the simple solutions that will make your business more valuable.

When buying a business it’s important to understand accounting principles so that you can condut the proper due diligence. This book will help simplify the process and also help you prepare your financing when seeking a bank loan or support from investors.