SBA – Resource Round-Up – March 31, 2020

SBA – Resource Round-Up – March 31, 2020

The Small Business Administration now has a page on their website dedicated to Small Business
Guidance and Loan Resources regarding Coronavirus (COVID-19).

There you can quickly access information about:

Each local region also has resources available:
Maryland District Office
New Jersey District Office
Pennsylvania (Eastern) District Office
Virginia District Office
Washington Metropolitan District Office

In addition, the SBA is also offering regular webinars on applying for SBA Disaster Loans.

Be certain to check with your local and state Economic Development Administration for additional
support and resources. Many are offering grants to help businesses weather this crisis.

We are reviewing the CARES Act passed by Congress and will more to share about that legislation and
how it may benefit businesses very soon.

We hope you and your family and your employees are doing well and doing what you can to “flatten the
curve” to shorten this down time and return to normal soon. We are here and would be happy to
connect if you need to talk.


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 info@harvestbusiness.com or 877-838-4966 to discuss selling your business, ordering a business valuation or buying a business.

What Now? Stay Focused… Keep Going

What Now? Stay Focused… Keep Going

Over the past several weeks I’ve been talking to business owners who are either current, prospective or past clients of mine about how COVID-19 is affecting their business.

I’ve been telling them while the number of buyers seeking information about businesses that are currently for sale has declined over the last several weeks, for the first 12 weeks of 2020, economic indicators consistently signaled a strong and growing economy. Rate of inflation has been: LOW. Unemployment rate has been: LOW. Housing demand is: UP. Consumer Spending is: UP.

Depending on the industry, some businesses, like commercial construction, accounting service firms, B2B and B2C services, certain IT sectors, and government contractors are still doing well continuing work on current jobs and submitting bids on future work. Other business owners, however, are now feeling the effects of COVID-19 on their business.

So, what should a seller or a potential seller of a business do until the COVID-19 curve flattens out and this problem virus is history?

    1. Continue running the business hard, fast and lean.
    2. Call and talk to all your customers. Ask how the virus is affecting them.
    3. Prepare a short-term cash flow forecast.
    4. Review your short-term business plan.
    5. See if your company can provide services and/or products to support the fight against COVID-19.
    6. Review your bank covenants.
    7. Contact your bank and other financial providers and obtain their continued support. In addition, financing and other assistance is being offered at the Federal and State levels.
    8. If you were planning on selling your business this year, prepare and place the business on the market now since it may take up to a year to locate the right buyer as the economy improves. Also, many people who have lost their jobs due to the virus will be considering buying a business as an option to finding another job. Banks are still lending and the U.S. Government, through agencies like the Small Business Administration and the Veterans Administration, as well as state governments will have programs to help buyers purchase small businesses. This helps both sellers and buyers.
    9. Connect with me at Harvest Business and let me help you if I can. Even if you just want to talk, I’m happy to have a conversation.

If you have a good business with consistently solid financials and strong business attributes now is a good time to think about your exit plan and perhaps even begin preparing to put your business on the market. Whether you want to sell your business now or at some later time, my best advice is to stay focused, keep going and use this time to plan for the future.

(If you find yourself with a little time, we wrote an ebook – “Ten Ways To Increase the Value of Your Business Before You Sell” – that might be the perfect thing to read!)

This post was written by Richard Stopa, Harvest Business Advisors Partner

Richard Stopa
Partner
Rstopa@HarvestBusiness.com
703-307-1187

Help from the Small Business Administration

Help from the Small Business Administration

Last month, we reported that 2020 was off to a fast start, another exciting year for business sales, acquisitions and valuations.  Enter COVID-19, a game changer.  Long term, it will be “business as usual”.  Transactions in many industries will continue ( this isn’t a credit crisis like 2009 when banks shut down).  Acquisition financing is available at low rates

A number of our broker and valuation engagements involve SBA financing.  We’ve been in constant contact with key lenders for their input.  Below are some takeaways, we hope it’s helpful.

SBA DISASTER RECOVERY LOANS

The SBA is working with state Governors to provide targeted, low-interest disaster recovery loans to small businesses severely impacted by COVID-19.  Lenders we work with have indicated that:

  • Estimates of $50b in SBA assistance will available for “disaster recovery loans”
  • Loans up to $2m in assistance can be applied for (in approved areas)
  • Disaster loans can be used to pay:
    • Debts,
    • Payroll,
    • Suppliers,
    • General business expenses,
  • Interest rates: 3.75% for small businesses and 2.75% for non-profits.

How to Qualify for The Loan

  • States have to apply for disaster relief (all states in our general area have done so)
  • SBA will review and issue an Economic Injury Disaster Loan Declaration (“Declaration”)
  • SBA will coordinate with the state’s Governor to submit the request for Economic Injury Disaster Loan assistance.
  • Once a Declaration is made, the application process for Economic Injury Disaster Loan assistance will be made available to impacted communities.
  • Loan repayments can be as long as 30-years.

For additional information,

https://www.sba.gov/page/guidance-businesses-employers-plan-respond-coronavirus-disease-2019-covid-19

 or contact the SBA disaster assistance customer service center,

1-800-659-2955 (TTY: 1-800-877-8339) or email disastercustomerservice@sba.gov.

Qualifying Disaster Areas

Areas have to first qualify for the relief loans.  ALL of District of Columbia SBA District is approved – as are the states of Delaware, New Jersey and Pennsylvania.

For updates to approved disaster areas and general information please visit: www.sba.gov/funding-programs/disaster-assistance

DEFERRMENT PAYMENTS FOR EXISTING SBA LOANS

If you have an existing SBA loan, the lender you worked with may provide temporary relief in the form of “deferred payments”. The SBA loans that qualify for the deferral are:

Business Acquisition and Working Capital Loans (7(a) Business Loans)

If you have a loan related to a business acquisition or related to working capital loans, the deferral options depend on “who holds the loan”:

    1. If the loan is held by your lender (i.e. NotSold on Secondary Market) the lender may grant a deferment of up to six (6) consecutive months
    2. If the loan was sold to investors, and they “hold the loan”, the lender may be able to grant a one-time unilateral deferment of up to 90-days without requiring approval from the investor who “holds the loan”

 Commercial Real Estate and Equipment Loans (504 Business Loans)

Certified Development Company’s (CDCs) may assist borrowers by deferring payments for a stated period of time. The amount deferred should not exceed

    1. Six (6) cumulative monthly payments or
    2. 20% of the original loan amount, whichever is less.

KEY POINT: Keep in contact with your lender; they understand, they recognize your struggle and they are there to help out.

We will keep our eyes open, ears to the ground and continue to let you know what we learn. Meanwhile, if you need something from us, please reach out – we are happy to talk!

This post was written by Harvest Business Advisors partner Eddie Davis. Eddie can be reached at EDavis@HarvestBusiness.com or 877-838-4966.


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 info@harvestbusiness.com or 877-838-4966 to discuss selling your business, ordering a business valuation or buying a business.

SBA Small Business Disaster Assistance – Coronavirus

SBA Small Business Disaster Assistance – Coronavirus

With the rash of business shutdowns due to the coronavirus it appears that many small businesses are going to have short term cash flow issues.  The SBA is offering disaster assistance loans that are likely to equal 3 to 6 months working capital needs.

Some links that may be helpful are below.

A blog run by Ami Kassar that has lots of helpful hints for obtaining SBA loans.  Most recently coronavirus related disaster loans.  https://tribe.multifunding.com/user/akassar

Ami Kassar is providing webinars on obtaining SBA disaster assistance due to the Coronavirus.  https://9buq9bpp.pages.infusionsoft.net/

Small Business Administration (SBA) website link for applying for disaster assistance working capital loans.  https://www.sba.gov/funding-programs/disaster-assistance

If we can be of assistance please call any broker at Harvest Business.

Business for Sale: Physical Therapy Practice (Maryland)

Business for Sale: Physical Therapy Practice (Maryland)

This practice has sold! HArvest Business Advisors is pleased to announce this business has sold. Congratulations and much success to the new owners. Best wishes to the sellers as they begin their next adventure.

Harvest Business Advisors is proud to present this opportunity to own a well-appointed and vibrant physical therapy practice with room for growth.

The Practice is a very successful, fully equipped, upscale and modern.

This physical therapy clinic is located in densely populated Montgomery County in the heart of the medical community.

Operating from a beautiful and professionally appointed class “A” medical building, the practice treats long-standing loyal patients as well as a steady medical referrals.

The location is well known for its convenience, free parking, and accessible location making it easy for both patients and referring physicians to utilize the practice.

This opportunity allows a Maryland-licensed Physical Therapist to start earning a significant income right from your first day of practice.

Physical Therapy Practice Financials

The clinic has room to grow with the addition of clinical support staff. Bringing on a Physical Therapist or hiring one or two additional Physical Therapy Assistants would provide growth to this waiting list practice.

Landlord is aware of sale and willing to assign lease or negotiate new term

The current owner/physical therapist is willing to stay on for an agreed upon period of time to help with the transition.

Asking Price; $990,000

Connect with Glenn Molin (GMolin@HarvestBusiness.com) at 540-287-1776 to discuss this business opportunity in more detail.

Click here for a Non-Disclosure Agreement and Finance Document.

Open with Adobe Reader, use their Fill and Sign Feature to complete and electronically sign the document, then return to GMolin@HarvestBusiness.com. We will then be able to discuss financial details and other confidential information about the business with you.


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 info@harvestbusiness.com or 877-838-4966 to discuss selling your business, ordering a business valuation or buying a business.

Business Sold: Tate Engineering Acquires Site Support Services

Business Sold: Tate Engineering Acquires Site Support Services

Harvest Business Advisors is pleased to announce Site Support Services, a Baltimore area HVAC/A-C service and preventive maintenance contractor has been acquired by Tate Engineering Systems, a leading full-service solution provider for mechanical equipment and systems in the Mid-Atlantic region.

“It was my pleasure to work with both Don Mellinger (Site Support Services) and Alec Baker (Tate Engineering Systems) and their teams, bringing together two leaders in the HVAC-Mechanical services industry. From the first meeting, both parties understood the synergy of the combination and were committed to making it happen. I appreciate the opportunity to work with them on this transaction.” said Ed Davis, C.P.A., C.V.A., a partner at Harvest Business Advisors and the business broker/intermediary who facilitated this acquisition.

Tate Engineering is headquartered in Baltimore and has offices throughout Maryland, Virginia and Pennsylvania.

“The combination of Tate Engineering and SSS is a perfect fit for our mission of providing trusted mechanical expertise and service to our customers. This will allow us to offer maintenance, repair, and mechanical system solutions that meet all of our customers equipment room needs. We couldn’t be more pleased to offer the combined strengths of both companies to our entire customer base.” said Alec Baker, President and CEO of Tate Engineering.

Donald Mellinger, CEO & Owner of Site Support Services said, “I believe Tate Engineering is the perfect synergistic fit for us and our customers. Our cultures and relational values are very similar. Most Importantly, our long-term commitment to our customer relationships, focus on safety and the high value we place on our team members are shared by both companies.”

Harvest Business Advisors congratulates Baker and Mellinger on this successful merger and wishes them great success in the future.


Clients choose Harvest Business Advisors for our accurate business valuations and our proven ability to deliver the highest price in the smoothest sale transaction possible. 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 info@harvestbusiness.com or 877-838-4966 to discuss selling your business, ordering a business valuation or buying a business.

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