If you are Veteran, and are thinking about purchasing a business, some new SBA rules may make things a little more difficult, especially if it is an existing business.
According to The Washington Post:
"The agency this month notified banks offering its most popular loan program, that effective March 1, the SBA will limit "goodwill" financing to 50 percent of the loan amount or a maximum of $250,000. The SBA does not directly lend money to small firms, but works with partner banks to offer a variety of loan programs that the agency partially guarantees."
What is "goodwill?"
"Goodwill, sometimes referred to as "blue sky" in the business world, is the value of a business that can't be accounted for through physical things like assets in a warehouse or a printer's printing press. It's the brains and cash flow of a company," according to the article written there. Read.
So, will this new rule from The SBA affect your purchase of a business, Veterans?
