BUSINESS MINDS BLOG

The SBA Loan Approval Process and Time Frames

The SBA Loan Approval Process and Time Frames

  • Posted: Jun 06, 2017
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The SBA Loan Approval Process and Time Frames “It’s not your parents’ SBA!” The U.S. Small Business Administration has been supporting small business owners in the United States since its inception in 1953. Its lead program, the SBA 7(a) government-guaranteed loan program, is one that has evolved into a very efficient and consistent process for loan approvals among participating SBA lenders. The most important factor to understand is that the SBA loan approval process is now a very refined template for underwriting the loan risk and loan approval decision. That means the SBA 7(a) loan approval process and time frames can now be the same, if not more efficient, than conventional bank or nonbank small business financing.
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Sticking a Toe (or Two) in the Exit Planning Pool

Sticking a Toe (or Two) in the Exit Planning Pool

  • Posted: Mar 21, 2017
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In this issue, we attempt to dismantle the most common objections owners have to undertaking the planning necessary to exit their companies successfully. Excuses to avoid Exit Planning include the following:

  1. The business isn’t worth enough to meet my financial needs. When it is, I’ll think about leaving.
  2. I will be required to work for a new owner for years.
  3. I don’t need to plan. When the business is ready, a buyer will find me.
  4. This business is my life! I can’t imagine my life without it!

 

Assuming we are successful in persuading you that Exit Planning not only helps your business while you are in it but also is the best way to leave the company to the successor you choose, on the date you choose, and for the amount of cash you want, you might ask, “How do I, as an owner, jump into Exit Planning?”

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Exits Are Inevitable, Failure Is Not: Planning a Successful Exit

Exits Are Inevitable, Failure Is Not: Planning a Successful Exit

  • Posted: Dec 29, 2016
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Planning a Successful Exit

We understand that business owners are so busy addressing today’s economic challenges that they can overlook the critical task of Exit Planning. We also understand that, at some point, all owners exit their businesses. When that day arrives, owners want to exit on their terms, the most important of which are financial independence and choosing the person or entity that will receive or buy the business. Continue reading

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TEXAS ASSOCIATION OF BUSINESS BROKERS

TEXAS ASSOCIATION OF BUSINESS BROKERS

  • Posted: Aug 11, 2016
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 TABB is the oldest statewide business broker association in the country, your connection to the profession.

TEXAS ASSOCIATION OF BUSINESS BROKERS

TABB was originated back in 1979, with the initiative of a few business brokers in Houston, the Texas Association of Business Brokers (TABB) was formed. This group of individuals pledged to meet regularly to discuss common issues and opportunities facing business brokers within the state. The goal was to improve the image of business brokerage by raising the professions expertise, ethics, and educate their members as well as the general public in regards to the business brokerage industry, which ultimately results in better servicing sellers and buyers in the process.

TABB became the place for both brokers and those involved in services relating to the sale and purchase of businesses. TABB developed educational programs, and in 1983 conducted its first State Conference in Houston offering two days of educational programs. The format established at this first conference has since been followed by TABB today and the International Business Brokers Association (IBBA) as well as the other state and regional business brokerage associations.

TABB, Inc. (“TABB”) is a non-profit trade association dedicated to improving and advancing the business brokerage profession for the benefit of its brokers, affiliates, buyers, sellers and the general public.  TABB has an established Code of Ethics, and provides education opportunities for all, promulgates forms for use by its members regarding many aspects of the business sale/purchase process, and delivers networking opportunities for those in the business brokerage profession, buyers/sellers and those who provide services related to the sell or purchase of a business.  TABB Guides business brokers and all other professionals within business transactions in a professional and ethical conduct aiding buyers and sellers of businesses to successfully transition their businesses and achieve optimal entrepreneurial goals.  Simply put, TABB’s mission is to educate and promote our members to become successful professionals with the goal of better serving the public.  

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When to Add a Personal Guarantor to a Small Business Loan Application

When to Add a Personal Guarantor to a Small Business Loan Application

  • Posted: Mar 17, 2016
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Whenever I explain the SBA and small business loan application process, I like to remind listeners that: (a) every small business loan application is evaluated according to five basic criteria, and (b) each loan application exhibits strengths and weaknesses which must be evaluated in the underwriting and loan approval process. The five criteria being evaluated include:  
(1) Personal investment by the loan applicant compared to the amount of debt being requested,
(2) Cash flow and repayment ability of the applicant for the proposed loan amount,
(3) Business ownership and management credentials of the applicant,
(4) Credit history of the applicant with other lenders, and
(5) Collateral offered for the loan in case of inability to continue making payments on the loan.
A good reason for a small business owner to think he can find a compatible lender would be if all five criteria have strong characteristics which can be documented by the lender.  

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Basic Financial Projections Required for an SBA Loan.   By: Bruce Hurta

Basic Financial Projections Required for an SBA Loan. By: Bruce Hurta

  • Posted: Jan 25, 2016
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Basic Financial Projections Required for an SBA Loan

Whether a business is approaching an SBA government-guaranteed lender for a startup business loan, or whether the business is already established and operating, most SBA lenders want to see basic income and expense projections from the business applying for the loan.

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SPIRIT OF AN ENTREPRENEUR

SPIRIT OF AN ENTREPRENEUR

  • Posted: Jan 21, 2016
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SPIRIT OF AN ENTREPRENEUR

An entrepreneur must be willing to risk everything he or she has in order to achieve success. They risk failure everyday for just the chance to succeed. They must be willing to earn less, risk more, work harder and stay optimistic in the face of total disaster.If you stick with it, work hard and refuse to give up, you’ll have more self-respect, more freedom, more security, and eventually more wealth than you ever thought possible.A publisher of a national business magazine once told me Houston was unique in one certain way.  He went on to say that going broke here didn’t carry the stigma it did in other cities. I think we Houstonians realize that for entrepreneurs; failure provides a learning curve and a chance to start over.   If you don’t take risks you will always work for someone who does.It’s not a crime to fail, it’s a crime to not try.If you’re having some difficult times and wondering if you’ll make it, trust me, there will be more difficult times in the future; it’s just part of it.  But if you stick with it, work hard, and refuse to give up, you’ll have more self-respect, more freedom, more security, and eventually more wealth than you ever thought possible.  It’s up to you. On the other hand, if the worst thing that can happen to you is that you fail, you can damn sure be rest assured you’re in “good company”.  And after all, here in Houston at least, it’s even admirable. An entrepreneur would rather work 80 hours a week doing something they love verses 40 for someone else.

 

Remember…
God’s Delay Is Not God’s Denial

Written by:    Dominick Caravella, III, President of Del Lingco International, Inc.

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