Here’s some good news… There are advantages to listing a business for sale NOW. Really? Yes, now in the middle of the COVID pandemic. Really!
1) The SBA is paying 6 Months of SBA loans (Principal & Interest will be paid by the SBA). If you have an existing SBA loan this applies to you. You don’t have to take any action, it should be automatic. But it gets better; this also applies to NEW SBA loans. It’s literally free money for your buyer for a limited time. If you sell your business your buyer could take advantage of this if they get the loan to a specific stage of the SBA before June 27th. This is sooner than you think in the SBA world, and it is be a strong motivator for buyers, so now is the time if you have thought of selling. This week I’ve had had buyers calling for this reason.
2) While the effects of COVID valuations are not yet known from a look-back perspective, it’s still relatively early. Listing now could mitigate long term detrimental effects COVID against your Income Statement.
3) If your business happens to be an ESSENTIAL business, the value of your business may have gone up! We’re in the COVID era, and buyers now realize how important essential businesses are. While the valuation effect is hard to quantify, buyers are seeking businesses like yours today!
If you’re not thinking about selling, but you would like help navigating the current options available, I’m here to help. I’ve put more hours than I’d care to admit in studying these programs, and I’ve been able to help owners with their options to bridge the gap.