$2,000,000,000,000. That’s how much the recent government economic stimulus program will be shelling out in response to the recent pandemic that shut down most of American businesses. The money is meant to keep citizens afloat, employees retained and companies in business. While the well-known programs are the Paycheck Protection Program (PPP) and the Economic Injury Disaster Loan (EIDL), there is help for business startups too.
Uncle Sam wants to help you buy a company
The Small Business Administration (SBA) has had the 7(a), 504 and Microloan programs for a long time. But in March, much of the 2 trillion dollar stimulus package was funneled to these loan products to make them even more attractive to entrepreneurs wanting to own and expand their businesses.
Tampa Business Broker, Tim Bellon says he has never seen anything like it. “These (SBA) loan programs are the most attractive anyone has ever seen in their careers.”. How attractive? The SBA will be paying the principal, interest, and fees on new loans for 6 months if issued before September 27, 2020. This is great news for aspiring business owners.
“I think we will look back at this time and realize that in this 5 month window may have been the best time in a generation to buy a business”
-Tim Bellon, Managing Broker at VR Business Sales of South Tampa
Who buys a business during a crisis?
When there are major shifts in the economy, it creates new opportunities for new groups of people. It’s common to want to own your own business one day, but most will rarely do it. It’s because life, family and circumstances come together to trap people in their existing jobs working for someone else.
However, if circumstances outside of their control change, as in the case of a layoff, that’s when people go back to that dream of being their own boss and creating their own destiny.
“It takes courage to see through the uncertainty and take a risk, but buying the right company at the right time, mitigates that risk and makes it tolerable. These market conditions are right, and we will see who has the courage ” Bellon says.
What businesses are available to buy?
There are thousands of great companies to buy right now. In every industry, and every county. Searching these opportunities is a click away. Bellon explains that companies are listed for sale for many good reasons. It could be that the owner is getting older and it’s time to retire or failing health forces the sale. Neither of which wait for a pandemic to end.
Due to our recent economic slowdown, buyers acting quickly may be able to negotiate better terms than they otherwise would. Bellon’s advice is “Don’t miss your window.”
About time Bellon:
Tim Bellon, Owner VR Business Brokers: Tim was born and raised in North Dakota, and after the culmination of a 21+ year career in the U.S. Army, he and his wife Beth retired in Apollo Beach, FL. He earned his Bachelor’s Degree in History and Political Science from Concordia College, and a Master’s of Science in Defense Analysis from the Naval Postgraduate School.
Tim joined the VR Business Sales Team in 2012 as the owner and managing broker of an office serving the greater Tampa Bay, FL. During this time, he has focused on helping business owners realize their goals through selling, buying, or growing businesses. He also assists individuals, and companies looking to expand, in the identification and acquisition of businesses.
Tim is community-oriented, and is a proud member of the following organizations; International Business Brokers Association (IBBA), Business Brokers of Florida (BBF), SouthShore Chamber of Commerce, Commercial Finance Association (CFA), American Legion, Disabled American Veterans (DAV), and the Knights of Columbus. Tim can be reached via email at TBellon@VRSouthShore.com.