If you are thinking of purchasing a business shortly with an SBA loan,
2005 tax returns could make the difference if you get the loan or not. Many of our clients that are now giving us packages in 2006 for SBA loan financing will need to have the 2005 tax returns to offset the lower revenues and adjusted net income from 2004 and 2003 business tax returns.
In several instances the 2005 tax returns from the business owner will make all the difference if our borrowers get a
preferred SBA 7a loan or not. If you are not careful about how the seller files his 2005 tax returns you could be in for a four months or more wait to buy that business!
If you are currently in the process (within the next three weeks) of buying a small or mid-sized business have the owner/seller file their 2005 tax returns at a
local IRS office and have the IRS office "stamp recorded" on a copy of the top page of the 2005 Tax Return. You will need this "stamped" copy for lenders to verify that the returns were indeed filed and that the amount on the 2005 tax returns are verifiable & otherwise there is a good chance you will have to wait for the IRS to receive, file, and record the returns & adding another 3-4 months of wasted, unnecessary processing time to close your deal.
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For more Information, Articles, SBA Loan Calculator, Pre-Qualification Info, and more Details on SBA Loan Financing for small & mid-sized business purchases go to: www.BizBuyFinancing.com•
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