The recent passing of the Economic Aid Act has created a massive financial incentive for buyers to act quickly to acquire a business with a Small Business Administration (“SBA”) bank loan. The SBA will now pay the first three months of principal and interest (up to $9,000 per month) and the buyer will not be charged any SBA fees at closing (which are typically significant). Additionally, the SBA guarantee amount has been increased to 90%, which now enables lenders to be much more aggressive. Buyers are extremely motivated to act quickly, as these are temporary incentives that will expire in September.
What Businesses Are Good to Sell in 2021?
- If you have a business that experienced a temporary slowdown due to COVID-19 but has bounced back, now is a great time to sell. The slow period in 2020 will not negatively impact the value of your business.
- If you have a business that has been unaffected by COVID-19, now is a great time to sell.
- If you have a business that has thrived during the pandemic or exceeded prior years, now is a particularly great time to sell.
- If you have a business that continues to underperform due to the current environment, now may or may not be a great time to sell.
We would be happy to speak with you to help you weigh your best options.
Take Advantage of Incentives Before It’s Too Late
Whatever the case may be with your business, please understand that these incentives will likely never happen again in our lifetime. If you have been thinking about selling, it’s worth your while to contact us so we can give you more details. Otherwise, we wish you all the best with a fantastic 2021 and hope to hear from you in the future.