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Im curious to hear from the business brokers out there - Is SBA financing the sole source of capital now?

We do commercial mortgages as well as SBA financing but I have only done a few biz aq deals. Besides SBA what is closing? Thanks an advance.

Jeff Rauth
http://www.cfa-commercial.com

Jeff Rauth

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Answers (3)
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The BAF Group LLC
MD

SBA is one of the many options. Seller financing has become more and more a requirement, since the Banks and SBA have narrowed their interest, abilities and general ease of lending. Private funding from third party, private lenders is also a viable way to go, for some types of businesses; however, though they tend to be easier to deal with in many ways, they also tend to be far more expensive.

Jun 4, 2010
Michael Hamlar
Hamlar Enterprises, LLC
Roanoke City County, VA

Jeff,

We are a business brokerage firm in Virginia and SBA is not the sole source of capital. There are many specialty banks that provide non conventional financing. We have several in our area. The second major financing option is seller financing. Many are willing to pay more if they can pay using the seller fiancing option. What have you experienced thusfar?

Regars,

Michael Lawrence Hamlar
President & CEO

Hamlar Enterprises, LLC
Hamlar Business Broker
P.O. Box 3336
Roanoke, VA 24015
Office: 1.800.682.1950 ext 101
Fax: 1.800.682.1950
Website: www.hamlarenterprises.com
Email: mike@hamlarenterprises.com
Skype: MHamlar

Jun 4, 2010
Terri Bollman-Wyzkoski
MainStreet Bank
Sr. Commercial Lender
Fairfax County, VA

Jeff,

SBA loans are not the sole source of capital availability in the market. However, it is an avenue for those who cannot qualify for conventional financing in such a tight credit market. Banks are more likely to lend when they can share the risk with the US government -- especially for those loan requests that have inadequate collateral or for start-ups. Fortunately, a company can receive the lowest interest rate in the market today through an SBA 7(a) loan because are capped at Prime + 2.75% (3.25% + 2.75% = 6%), and loan fees are waived as a result of the American Recovery and Reinvestment Act.

We are a commercial loan broker firm that provides packaging and placement of loans on behalf of companies nationwide. We are staffed with former commercial lenders who know how to structure loan requests, and who know how to deal with banks to get the most favorable terms and conditions on behalf of our clients. We look at all available options.

Our firm has existing relationships with banks and other lenders nationwide, including lenders who do nothing but SBA loans. We know each their cultures, their interest (or non-interest) in particular industries, and their specific risk appetite. As a result, we can more quickly identify the most appropriate financing option and lender for you.

Kindest regards,
Terri B. Wyzkoski
Managing Member
Business Lending Solutions LLC
11654 Plaza America Drive #363
Reston, VA 20191
Twyzkoski@BusinessLendingSolutionsLLC.com
Direct: (703) 655-9939
Skype: BLS_TerriWyzkoski
Linked-In Profile: http://www.linkedin.com/profile?viewProfile=&key=11431574&locale=en_US&trk=tab_pro

www.BUSINESSLENDINGSOLUTIONSLLC.com
Your Financial Solutions Provider.

May 27, 2010

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