If this sounds like a sales-pitch, well, it sort of is. We are excited!
There have recently been a whole bunch of new stuff announced by SBA which aims to simplify the process to apply and qualify for a loan and to increase access to capital. As we wait on the details (welcome to our world), we are especially excited about two of the new items.
First, the SBA is relaxing affiliation rules and doing away with the franchise registry. That’s a big deal around here. We are very active in franchise finance including startups, acquisitions and expansions and anything the agency does to simplify the process opens up opportunities for more entrepreneurs to pursue their dreams.
Second, which will probably make an even bigger impact on capital access is the ability to use SBA loans for partial equity purchases. We are still waiting on the exact wording, but the change in rules appears to open the door to another financing tranche that’s been effectively used in private equity for many years. If it does what we think it does, a daughter will be able to buy into her parents’ business with limited resources, assisted by an SBA loan. That’s just one example of the many, many opportunities that will now be available to small business borrowers!
Stay tuned for more developments and reach out to us to take advantage of these exciting changes. Our Gulf Coast Small Business Lending team is here to help.