Harvest Business Advisors works with Small Business Administration (SBA) lenders for many of our transactions. Our entire team keeps up-to-date on all SBA programs and announcements to better serve our business brokerage clients and our business valuation clients.
We’d like to share this recent announcement from the SBA about addition of two new modules to their “ Money Smart for Small Business ” curriculum. The two new modules are Banking Services and Building Strong Credit.
“Money Smart for Small Business aims to help small business owners and entrepreneurs understand how a strong banking relationship can help them achieve their vision,” said Elizabeth Ortiz, Deputy Director for FDIC’s Consumer and Community Affairs. “The relationship between banks and small businesses is symbiotic: when one succeeds, so does the other.”
For the complete announcement from the Small business Administration, please visit https://www.sba.gov/about-sba/sba-newsroom/press-releases-media-advisories/sba-and-fdic-updates-money-smart-small-business-credit-and-banking-modules
To learn more about the Money Smart for Small Business program, please visit www.fdic.gov/smallbusiness.
If you have any questions or need more information about SBA lending practices and requirements or a business valuation for a SBA loan, feel free to connect with us for a conversation.
Clients choose Harvest Business Advisors for our sage advice on profitably growing their business, accurate business valuations, and when the time is right, a consistent ability to deliver a high price as part of a smooth exit transaction.
Harvest Business Advisors provides business brokerage, business valuation, and business succession planning services. We have extensive experience in the information technology and professional services, manufacturing, distribution, and contracting fields. We maintain offices in Maryland, New Jersey and Virginia. Connect with us at email@example.com or 877-838-4966 to discuss selling your business, ordering a business valuation or buying a business.
Harvest Business Advisors typically works with business owners ready to sell their businesses and one of the common refrains you’ll hear from our brokers is to “build your business to sell your business”. With that in mind, we encourage you to consider the Small Business Administation’s, SBA, 2019 Emerging Leaders Initiative program for small business owners.
For over a decade, the SBA has provided no-cost entrepreneurship education and training for executives of “poised for growth” companies (typically business that have been operating for at least three years, with annual revenues of at least $250K).
Unlike programs for start-ups or new businesses, this program is geared towards businesses ready to develop a growth strategy.
From the SBA website, the Emerging Leaders Initiative program includes:
- A three-year strategic growth action plan with benchmarks and performance targets to help the participant emerge as self-sustaining businesses that creates jobs and build communities
- Includes 100 + hours of professional specialized training and peer-to-peer counseling delivered over the course of seven months
- Specialized areas of training include:
- Growth Strategies Plans
- Financing and Access to Capital
- Government Contracting
- CEO Mentoring
The Emerging Leadership Initiative program provides – at no-cost – the opportunity to grow and strengthen your company. If you qualify, we encourage you to connect with the SBA to discuss the program further. It’s quite an opportunity – especially for companies that work in government contracting.
Thank you for the opportunity to share some thoughts on SBA business valuation for SBA loans directed at SBA lenders and their advisors.
(Based on a SBA business valuation presentation presented to the Maryland Commercial Lenders Association on September 26, 2018.
Business valuations are all about understanding the drivers that bring value to a business and how valuators are required to measure those drivers. An important place to start is with the questions;
- Who is the value is being calculated for?
- What is the standard of value to be used?
- What is the purpose of the valuation?
- Why is the valuation being conducted?
In general, for SBA purposes a third party appraisal is required when financing business sale transactions if:
- the amount being financed after deducing for the appraised value of equipment and real estate is more than $250,000,
- there is a close relationship between the buyer and seller – family members / partners /employees, or
- the lenders internal policies require it.
I hope you enjoy the presentation and learn a few things you can apply tomorrow from it.
Questions or to contact:
Presenter, Greg Caruso, JD, CPA, CVA
Clients choose Harvest Business Advisors for our accurate business valuations and our consistent ability to deliver a high price as part of a smooth exit transaction.
Harvest Business Advisors provides business brokerage, business valuation, and business succession planning services. We have extensive experience in the information technology and professional services, manufacturing, distribution, and contracting fields. We maintain offices in Maryland, New Jersey and Virginia. Connect with us at firstname.lastname@example.org or 443.334.8000 to discuss selling your business, ordering a business valuation or buying a business.