New Small Business Law Could Make Buying Or Selling A Business Easier

Oct. 19, 2010 - PRLog -- Minneapolis, MN - The financial markets have made it difficult for small businesses to get loans. The President just signed a new law aimed at making it easier. This new law could benefit those looking to buy an existing business or start a new business or franchise.  The law could also benefit current business owners who have been thinking about selling their companies.

The law improves existing loan programs and includes multiple small business tax cuts. Some elements the new bill contains include:

•Fee Waivers on SBA loans are now in place, but only while the money lasts.  Buyers considering a SBA loan should act quickly to take advantage of fee waivers as they will only last as long as the limited funding.

•Lending limits have been increased significantly on SBA loans.  Transactions that previously may have been too large for SBA funding may now qualify.  This is especially good news for sellers and buyers of companies who were previously too large to qualify for SBA financing.

•When small businesses buy new equipment, they may immediately write off the first $500,000 of that investment.

•For eligible small businesses, some long-term investments in the company will be subject to zero capital gains taxes.

•Entrepreneurs with a fresh idea will be able to deduct the first $10,000 of their start-up costs.

•Those who are self-employed will be able to deduct 100% of the cost of health insurance for themselves and their family.

SBA lenders are working to incorporate the new law into their lending practices.  Sunbelt M & A Group business brokers encourages those considering SBA financing to 1) make sure they are working with SBA preferred lenders 2) get a recommendation from a local business broker on banks that are friendly to small business loans.  Just because a bank is “SBA preferred” does not mean they are SBA friendly.  A business broker can make sure you are talking to a lender that won’t waste your time.

About Sunbelt Business Brokers and Sunbelt M & A Group

Sunbelt helps people buy and sell companies. As a leading business sales firm Sunbelt has extensive experience in mergers and acquisition and succession planning. Sunbelt of Minnesota has offices in Minneapolis and St Paul and is affiliated with Sunbelt Midwest with offices in Chicago and Milwaukee.  Sunbelt worldwide has approximately 300 offices.  

For more information on buying or selling a small business visit www.sunbeltmidwest.com.  For information on buying or selling a larger company visit www.sunbeltmandagroup.com