Around the Web: A Week in Summary
The following information has been sourced by Business Brokerage Press for the benefit of the business brokerage community. The views of these articles do not necessarily represent the views of Business Brokerage Press. We hope you find this information helpful.
A recent article from BizBuySell entitled “The CARES Act May Allow You to Buy a Business for Effectively No Money Out of Pocket” discusses how buyers can benefit from recent legislation.
The CARES Act was signed on March 27, 2020. Part of the CARES Act involves the SBA paying 6 months of SBA loan payments for current SBA loans and new SBA loans closed before September 27, 2020.
This is a significant opportunity for buyers which could produce savings of tens of thousands of dollars on a single transaction. Given the September 27 deadline, buyers should start looking for a business to purchase now or very soon.
A recent article from Small Business Trends entitled “57% of Small Businesses are Optimistic Despite COVID-19” explores the results of the recent State of Small Business Report from Facebook and the Small Business Roundtable.
86,000 small businesses were surveyed about COVID-19 related topics. Highlights of the survey results include:
- 57% of businesses are optimistic or extremely optimistic about the future of their businesses
- 31% of businesses had stopped operating as of April 2020
- 79% of businesses have changed and adapted in some way to cope with COVID-19
- 76% of businesses that remain open worry about cash flow
- 11% of businesses that are still operational expect to fail in the next 3 months if current conditions continue
A recent article from Forbes entitled “Important Updates To The PPP May Equal More Money For Your Small Business” discusses an updated Payroll Protection Program FAQ fact sheet recently released by the SBA.
The fact sheet features 17 pages, 46 points and several reference documents. Some of the highlights include:
- PPP loans under $2 million are eligible for forgiveness without proof of financial hardship
- Partnerships and seasonal employers may be able to increase their loan amount
- There is still money available and businesses can still apply for a PPP loan