The Feds raised the
prime rate another ¼ point last week, but at this point I don't see any
weakening in demand for business purchase financing utilizing SBA loan financing due to the recent rate hikes. The reason for this is that there are not many alternatives for financing when it comes to
financing a business purchase, especially larger purchases in the $1M to $3M range. Venture capital type financing comes up but who wants to give away equity in a new business purchase if you don't have to?
Commercial/conventional financing right now for business acquisitions is non-existent unless you can collateralize a majority of the purchase with some form of real estate or asset.
There is word that the SBA may be raising the current 7(a) loan program limit of $2M to $3M soon, but with higher fees possible for borrowing. Stay tuned . . .
•
Technorati •
del.icio.us •
Digg It •
Furl •
ma.gnolia •
Spurl •
Yahoo MyWeb 
Comments:
