LIVE: New World of SBA Financing 2020

Transcript

Andy and Jessica welcome you to another edition of a live podcast. The Paycheck Protection Program (PPP) loans are bringing up the subject of SBA financing for business acquisitions, Andy and Jessica are receiving the experts to dive deep into the opportunities this kind of loans are presenting in difficult times while coping with the financial impact that COVID-19 is creating.

The SBA program has historically been a great way to bail out the economy and that is why, in today’s episode, the future will be assessed with the company of the experts in business lending, John Wahl, from Live Oak Bank, and Lynn Singletary and Hakim Kassam from Bank United.

Listing of the week: Charles Palmer (Nashville). Family-owned Pizza Restaurant in business for 17 years. Italian menu, ample sitting space. Asking price $175,000. SDE $170,000 annually. Really motivated seller. Great potential. Call Charles Palmer (615) 962-4462 or email [email protected]

Show Notes

[4:25] What is SBA lending?

[8:16] The only loans that the bank has been making in the last months are PPP loans.

[9:10] The lenders are looking at what industry is asking for a loan and how it was affected by COVID-19.

[10:10] How is PPP affecting what is going on right now in the business world?

[11:48] The rules for forgiveness have not yet been issued in regard to PPP loans.

[15:35] Lynn talks about the waiver of the SBA guarantees.

[17:35] 7(a) loan is approved under the CARES act with 110 billion dollars.

[17:58] There is a risk of dollars not being available, but it is pretty minimal and short term in nature.

[18:35] John talks about the benefits that are available now and will be accessible in the near future.

[21:45] What does a typical 7(a) SBA loan look like?

[26:19] How PPP loans will be handled in the transference of a business?

[29:07] Will PPP money be taxable?

[30:10] Make sure you have clean financials.

[31:30] PPP loans are only being issued to bank customers.

[34:10] How interest rates are determined in these types of loans for business acquisitions.

[36:23] What if someone wants to buy a business above the $5 million range through a bank loan?

[37:55] John and Lyn talk about which loans can’t be done through a bank right now.

[41:55] The opportunity of buying businesses that go bankrupt.

[43:54] Quickfire round questions

[55:58] Deal of the week: Dustin Audet (Colorado). Liquor store specialized in Colorado products. The buyer had an E2 Visa. Listed price $99,000 plus inventory, sold at $50,000 including inventory. The buyer paid in cash.

[1:00:50] Listing of the week: Charles Palmer (Nashville). Family-owned Pizza Restaurant in business for 17 years. Italian menu, ample sitting space. Asking price $175,000. SDE $170,000 annually. Really motivated seller. Great potential.

Mentioned in This Episode

• The Deal Board Podcast
• Transworld Business Advisors
• Transworld on LinkedIn
• Transworld on Facebook
• Connect with John Wahl
• Connect with Hakim Kassam
• Watch this episode on YouTube!