Small Business Administration to Ease Limits on Loans

Earlier this year the SBA put a 250k cap on the amount that could be financed for intangible assets in an acquisition loan. Looks like they're raising the cap to 500k (with a review process for amounts in excess of this).  Even with the 250k cap in place we have been getting larger deals approved and successfully completed. 

The cap increase will definitely help to get more deals done. The primary value of most healthcare professional practices is in goodwill intangible assets.

 

Ronald Feldman called the cap the "antistimulus". The SBA's move to implement a cap on goodwill during the midst of the financial turmoil earlier in the year was mind-boggling to most, because it created additional hindrance to funding in a time of need for many small business deals. I understand the desire to curb sellers from inflating intangible asset values, but there's probably a better way to accomplish this, and the timing wasn't so great either. Here is the link to the full article from the Wall Street Journal:
https://online.wsj.com/article/SB125348578905126173.html?mod=dist_smartbrief

-David Lopez

Have Questions? We are here to help.

Please enter your name
Please tell us your title
Please select a state
Required
is not a valid e-mail address.
Please enter a valid phone number
Please tell us how you found us
Please include a brief message
Invalid Input

Contact Us

Have questions about buying or selling a practice?

1-800-416-2055

About Us

Most doctors looking to buy or sell their practice can’t find the time to figure out the complicated steps involved. At Transition Consultants, we’ve created a process that makes the transition painless so they can move into their next season and start living life on their own terms.

Copyright © 2024 Transition Consultants. All rights reserved.