Wednesday, August 02, 2006
SBA Woes Continue
I was reading this article in Fortune Small Business last night and thought it was interesting:
http://money.cnn.com/magazines/fsb/fsb_archive/2006/06/01/8378595/index.htm
The author did not have many nice things to say about the SBA and its state of affairs. I'm always struck with how many buyers think that they can buy any business through the SBA, thinking it's an easy deal. (It's not.) In fact I cringe when they tell me that they plan to apply for a loan with any of my deals, knowing the likelihood of getting financing is often not good and it slows down the process tremendously. More and more sellers are having to carry notes back -- even with successful SBA financing. I wonder how and if the changes in leadership will effect our deal flow in the future.
http://money.cnn.com/magazines/fsb/fsb_archive/2006/06/01/8378595/index.htm
The author did not have many nice things to say about the SBA and its state of affairs. I'm always struck with how many buyers think that they can buy any business through the SBA, thinking it's an easy deal. (It's not.) In fact I cringe when they tell me that they plan to apply for a loan with any of my deals, knowing the likelihood of getting financing is often not good and it slows down the process tremendously. More and more sellers are having to carry notes back -- even with successful SBA financing. I wonder how and if the changes in leadership will effect our deal flow in the future.
