February 2010 Newsletter

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SBA Update

Due to the continued need to drive money into the small business sector, the federal government has approved some strong SBA programs. See the SBA news release at http://www.sba.gov/idc/groups/public/documents/sba_homepage/news_release_09-83.pdf

An excerpt: “This Administration and Congress recognize that these key programs were successful in helping jump-start the economic recovery for America’s small businesses,” said SBA Administrator Karen Mills. “The increased guarantee and reduced fees on SBA loans helped put more than $16.5 billion in the hands of small business owners and brought more than 1,200 lenders back to SBA loan programs. The extension of these programs through February is important to continuing our path toward recovery and will mean thousands more small business owners have access to the credit they need.”

Bottom line: The SBA will guarantee 90% of the approved loan and has temporarily waived the guarantee fees that are normally part of the buyer costs in the package. The fees will be waived until funds are depleted and the 90% guarantee program extension will carry through until February 28th.
This is a great time to get moving on the business transaction you’ve been thinking about. The guarantee fees can cost a buyer thousands of dollars and have caused deals to collapse or forced a change in structure. Don’t delay; call your Apex Business Advisor!

Negotiation Tips

Whether you are a buyer or seller of services or widgets there are a few straight forward tips to negotiating to remember. As when dealing with your teen agers or spouse, pick your battles. List out the most important things to you and areas you are willing to give. Understand your ultimate goal. Try to take the emotion out of the process. Negotiation is about give and take, so be willing to give when it is appropriate. If you are asked to give on a point, then what can you get in return?

An article in Entrepreneur Magazine goes through 10 points of negotiation from a seller’s point of view. It still has relevant points for everyone involved.

http://www.entrepreneur.com/growyourbusiness/sellingyourbusiness/article203644.html

Be sure to keep your Apex Business Advisor in the loop and ask questions. We can assist through the process and share the successes and failures of past negotiations.