The borrower was referred to BFG by his CPA who has been referring his clients to BFG since attending a seminar provided by BFG in 2009. The CPA wanted his customer to benefit from the government subsidies associated with American Recovery Act and Hiring Act of 2009.
The SBA loan provided the following benefits:
•Saved $10,867.50 in SBA Guaranty Fees that are temporarily eliminated due to the American Recovery Act of 2009.
•Up to $250,000 in depreciation benefits in Year 1 from the increased depreciation allowance from the Recovery Act of 2009.
•$1,860 in Payroll Tax Exemptions for each new unemployed worker ($30,000 salary) hired to operate newly acquired equipment.
•The business will also receive $1,000 tax credit for the newly unemployed worker that is retained for at least one year.
•The working capital provided the borrower with sufficient cash cushion to retain existing employees while remaining competitive for the future.
•Maintained competitive in the industry by acquiring state-of-the-
•The 10-year SBA term loan saved the company 42% in reduced monthly payments compared to 3 to 5 year repayment terms for traditional equipment leasing/financing programs.
While many SBA lending participants have either substantially reduced or eliminated their SBA loan participation, Business Finance Group (BFG), with its core community bank lending partners, has continued to be a very active participant and is positioned well to assist small businesses to take advantage of the latest positive developments for the SBA 7(a) lending program.
BFG has more than 40 years of combined SBA lending experience. Please call one of our qualified staff to discuss how Business Finance Group can provide small business financing assistance.
BFG successfully assists businesses expand their business horizons.
