Posted in Become a Business Owner, Business Broker Why & How, Buyers Articles, Listings, Sellers Articles, Uncategorized, Videos, Visa/Immigration
Here is the article to view along with the video:
Small Business? How To Get Financial Relief During The Coronavirus Crisis
Posted in Business Broker Why & How, Sellers Articles
It can be a difficult time to understand the financial aspects involved in being an entrepreneur. We have put together a list of some programs and ideas to hopefully make this a bit easier.
So – if you’re worried about taking care of your employees, worried about more important things…we hope this helps!
#1 Paycheck Protection Program
The U.S. Small Business Administration (SBA) has $350 billion to support job retention and operating expenses.
The Paycheck Protection Program creates an emergency loan that can help small businesses retain a full workforce during COVID-19.
Who is Eligible?
Eligible businesses must have been operational on February 15, 2020.
How Much?
Small businesses may apply for a maximum loan of $10 million with no higher than a 4% interest rate.
To determine your income in most cases, collect your net income/W2, gather your annual health insurance costs and the amount that you have contributed to retirement.
Loan Forgiveness
SBA will forgive loans if all employees are kept on the payroll for 8 weeks, and 75% of the money is used for payroll while the rest can be used for rent, mortgage interest or utilities. This starts on April 3 and will be available through June 30, 2020.
How to Apply:
You will apply for the Paycheck Protection loan at your local bank.
Terms:
#2 Economic Injury Disaster Loans & Loan Advance
Economic Injury Disaster Loans are the SBA’s low-interest disaster loans given to small businesses experiencing a substantial economic loss due to a disaster.
Who is Eligible?
The CARES Act expanded eligibility for EIDLs to all small businesses in the U.S. affected by COVID-19.
How Much?
Eligible businesses may qualify for a loan of up to $2 million.
Emergency Loan Advance
You may also apply for an emergency loan advance of up to $10,000. If your application is accepted, these funds would become available within three days and would not have to be repaid.
How to Apply:
Businesses may apply for an EIDL and loan advance here.
Can you get a Paycheck Protection Loan and an EIDL?
Yes, as long as you are not using them for the same expenses. Talk to your financial advisor about the best option for your business.
#3 Business Tax Changes
In an effort to alleviate the strain on small businesses affected by COVID-19, the CARES Act has made specific changes to taxes and tax policy.
#4 Families First Coronavirus Response Act
The Families First Coronavirus Response Act (FFCRA) provides assistance to employees affected by COVID-19.
As a small business, this means new requirements for paid sick leave and paid family and medical leave (FMLA), as well as employer tax credits.
Read more about the FFCRA and what it means for small business here.
**Please contact your CPA about the employer tax credits**
#5 SBA Debt Relief
To help small businesses overcome the challenges of COVID-19, the SBA has implemented a debt relief program.
#6 SBA Express Bridge Loans
With an Express Bridge Loan, businesses may access up to $25,000 to ‘bridge the gap’ as you wait for your Economic Injury Disaster Loan application to process.
**Different banks have different rules, so you must call. Some are not accepting new business and only servicing past clients – while there are a few banks who will act so long as you have opened accounts**
#7 The Cares Act
Student Loans
**Pausing will still result in you getting monthly payment credit regardless of what your servicer tells you**
#8 The Florida Small Business Emergency Bridge Loan Program
Who is Eligible?
How Much?
Small businesses can apply for up to $50,000 with interest rates at 12%, 1 year term, 1 loan per business and you must apply before May 8th, 2020.
Loan Forgiveness
All bridge loans must be paid in full.
How to Apply:
#9 For Your Employees:
Family Medical Leave Expansion
Emergency Paid Sick Leave Act
Other potential options for securing capital or saving money at the moment:
Bridge Loans:
Businesses with collateral can get a bridge loan even if the business is losing money.
Facebook Grants:
https://www.facebook.com/business/grants
Credit Card Processing:
If you take credit cards at your business we have an option for merchant processing. We have created a partnership with Priority Payments South Florida and created a program that will pass on the credit card fees to the consumer automatically. This has saved businesses everywhere from a few thousand to hundreds of thousands.
Insurance:
Check your insurance policy to see if it includes disruption insurance.
Landlord:
Contact your landlord or property manager if you have not already. They may be willing to work with you on your rent payments.
Stocks:
Non-recourse stock loans may be an option for you.
Home Equity:
Home equity lines of credit may be possible if you have enough equity in your home. You would need to talk to a lender about this option.
There are still a lot of moving parts with these programs/options and information is changing daily. So far we have not received guidance on the ins and outs of each program – for instance whether a business run out of your home would qualify for reimbursement of rent, how overlapping businesses may be handled, etc. The message here is it doesn’t hurt to try. Talk to us today about any of the options above and we may be able to help you decide which programs would be right for your particular circumstance.
Also – some banks are asking for a business valuation. Right now, due to the situation, we are doing these free of cost if needed. Simply send us 3 years of P&Ls and/or tax returns and we would be happy to provide this to you.
Life can and will return to normal. As a business owner you are more than acquainted with challenge and hardship – it’s the grit and determination of facing tough situations that makes you a successful entrepreneur. Don’t give up. Find creative solutions, programs you can utilize and plans to keep your business running as smoothly as possible during this unprecedented time. If you need help – ASK US! We know what you are going through and will assist you in every way we can. Reach out today, and stay safe out there.
Michael Monnot
941.518.7138
Mike@InfinityBusinessBrokers.com
12995 South Cleveland Avenue, Suite 249
Fort Myers, FL 33907
www.InfinityBusinessBrokers.com
Posted in Buyers Articles, Sellers Articles
According to a Gallup poll, the small business model is still favored by the public – so businesses large and small can help themselves by trying to stay true to the “smaller is better” model.
“Forces are pushing U.S. companies toward mergers, consolidations, acquisitions and growth. Yet, Americans continue to show strongly negative attitudes toward ‘big’ business, coupled with a continued strong attitudinal affinity for small business. This poses an essential dilemma for large enterprises attempting to build and maintain a thriving business-to-consumer customer base.
The basic data are clear. Gallup’s most recent research shows that 70% of Americans have ‘a great deal’ or ‘quite a lot’ of confidence in small business, more than three times the 21% confidence rating for big business.”
Think about why people prefer small businesses over huge corporate conglomerates. Attention. Customer service. The ability to understand local community needs. Those are the areas where smart small business owners can focus in order to set themselves apart from the big businesses that could otherwise easily destroy them with volume pricing. The way you put those ideas into practice is by making your business as accessible and customer-experience focused as possible.
If you are buying a business, you need to make this consideration when you take over the helm. Regardless of the old owner’s practices, you need to focus on customer service and community involvement. If your new business doesn’t have a website or social media presence – create one. Make you business accessible both on and offline. Come up with creative marketing strategies that will position your new enterprise as a pivotal member of the community. Sponsor related community events. Donate money or supplies when the occasion calls for it. Join local festivals and parades. You need to keep your focus on the local customer because their loyalty to you is your only weapon against the intrusion of huge corporations into your industry space.
If you currently own a business and are considering selling now or in the near future – your focus needs to be nearly the same as someone just about to take over as a new owner. You absolutely must have a decent website, one that gives real-time information about the goods and services you offer. You need a social media presence that you update several times a week, if not daily. You should be growing your business always, even if your near-future plan is to sell because a business with a solid path toward growth is going to fetch a much better selling price than a business that is stagnant. The creative marketing strategies above can and should be used to solidify your business in your area as a community business.
Big business will only win if small business stops paying attention to what matters most – local, loyal customers and their ability to access your business how and when they want to. Online presence and community presence will put the business you buy and the business you hope to sell in a great position to succeed.
Are you thinking about buying a business and were worried about how a small business can compete with the industry giants? Have you considered selling your business and want to know more about how implementing the ideas here can help your sale? Ask us! Leave any questions or comments here and we would be happy to help.
Want to read the Gallup article? Click here:
Michael Monnot
941.518.7138
Mike@InfinityBusinessBrokers.com
12995 South Cleveland Avenue, Suite 249
Fort Myers, FL 33907
www.InfinityBusinessBrokers.com
Posted in Sellers Articles
Is it possible to sell your business during a pandemic?
One, the buying and selling of businesses is the job of business brokers. Business brokers don’t have their own licensing category in terms of professional regulations – so they are licensed as real estate brokers. The good news is in most states real estate is considered an essential service, meaning business brokerages are currently operating – albeit remotely.
That brings us to our second reason – the vast majority of the business buying and selling process can be done without having to break social distancing guidelines.
You can meet with your business broker by phone or by video chat. When it comes to contact with potential buyers – conference calls and video meetings are always available, and quite frankly something we already do with regularity. Documents can be shared securely online. We can create a virtual tour of your business so potential buyers can do an on site visit from the comfort of their couch. Our brokers can even arrange in person contact or on site visits if absolutely necessary, as we have implemented protocols whereby appropriate social distances are kept in place, no one shakes hands and all common surfaces (like door handles) are cleaned both before and after.
If you have been considering selling your business – now might be a great time to start the process. You probably have extra time on your hands right now, and you can use that time to organize your business documentation, talk to your business broker and perhaps even tackle your to-do list in terms of maintenance at your currently closed business location.
It’s also a great time to list your business because there are a lot of seriously bored people who are currently rethinking their life choices – and more than a few of them will be searching online for business ownership opportunities. Why not make your business one of them?
We’re sure you have a lot of questions. It might seem like a bad time to make any drastic changes to life, but the truth is life will eventually return to normal. Kids will go back to school, people will go back to work and your business doors will be open again. Where do you want to be when that return to normalcy happens? Retired? Looking for a new business because you are burned out with the one you currently have? Taking a new path with the money you’ve made from the sale of your business?
If you’re considering a big life change, talk to one of our business brokers today. They can tell you about the changes in protocol and changes occurring within the market – as well as what businesses like yours have recently sold for. They can also offer guidance on how to get your business ducks in a row so you can take advantage of the litany of buyers looking for a different life too.
Don’t wait. Use this unprecedented time wisely, and you could be well on your way to a new chapter of your life.
Are you thinking about selling your business but are worried that the current pandemic will make it impossible? Do you have questions about how the business-for-sale market has changed recently? Ask us! Please leave any questions or comments and we will be happy to help.
Michael Monnot
941.518.7138
Mike@InfinityBusinessBrokers.com
12995 South Cleveland Avenue, Suite 249
Fort Myers, FL 33907
www.InfinityBusinessBrokers.com
Posted in Become a Business Owner, Buyers Articles
It’s an uncertain time. A global pandemic, the closure of everything from businesses to parks and a constant stream of terrifying information. While we all hunker down for the foreseeable future, it might seem like current circumstances should put your future dreams on hold.
This time away from normal life might be giving you a chance to rethink – well, everything. Are you really happy on your current path? Is there something you’ve always wanted to do but life got in the way? Have you always envisioned life as the owner of your own business, waking up each morning to do something you love instead of just punching a clock?
Maybe now is the time to have a conversation with a business broker about what types of businesses would meet the goals you have for business ownership. Then, instead of endlessly scrolling on Instagram you could be searching for the perfect business – the one that would set you on the path to the life you’ve been dreaming of.
Think it’s impossible to buy a business right now because of Covid-19? It’s not.
Why?
First, the buying and selling of businesses is the job of business brokers. Business brokers don’t have their own licensing category in terms of professional regulations – so they are licensed as real estate brokers. The good news is in most states real estate is considered an essential service, meaning business brokerages are currently operating – albeit remotely.
Next, the vast majority of the business buying process can be done without breaking social distancing guidelines. Business searches can be completed via your laptop from your couch. Conference calls and video meetings are always available, and quite frankly something we already do with regularity. Documents can be shared securely online. Business site visits can be done via virtual tour. Our brokers can even arrange in person contact or on site visits if absolutely necessary, as we have implemented protocols whereby appropriate social distances are kept in place, no one shakes hands and all common surfaces (like door handles) are cleaned both before and after.
Make use of this time away from the day-to-day grind to decide if you really want your old life back once all of this is over. Spend your free time searching for businesses, talking to the owners of businesses you like and getting yourself on the path to business ownership.
Have you always wanted to own your own business and this pandemic is making you question your life choices? Do you want to know what types of businesses are in your price range and would meet your goals for business ownership? Ask us! Leave any questions or comments here and we would be happy to help.
Michael Monnot
941.518.7138
Mike@InfinityBusinessBrokers.com
12995 South Cleveland Avenue, Suite 249
Fort Myers, FL 33907
www.InfinityBusinessBrokers.com
Michael Monnot
941.518.7138
Mike@InfinityBusinessBrokers.com
9040 Town Center Parkway
Lakewood Ranch, FL 34202
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