Mastering Business Acquisitions: Impact of SBA Rule Changes

There was a lot of cool SBA rule changes that happened over the past year or two. I think overall they're beneficial to the market. Without SBA, first of all, the lack of liquidity would change the market completely.

It'd be a totally different environment for buying small businesses. So we're all very happy SBA 7A loan exists and that makes the world go around as far as small business acquisitions. And the more that they change the rules, I think they're loosening up some of the rules that have been more traditional and legacy rules so that there is more liquidity, there's more flexibility in buying small businesses.

So they're allowing seller equity rules into asset purchases, not just stock purchases, things like that. There's a lot of little tweaks that made it more flexible for acquisitions and I think that's headed in the right direction. The only negative I really saw and I probably don't know every rule of the SBA changes that happened in the past year, but the only negative that I really saw on my end was the confusion a little bit in the rule changes.

So they would make changes and it's part of the bank's responsibility to try to interpret those or clarify or understand how to take those and move forward. And they did seem to cause a lot of confusion in the lack of clarity around the new rules because if you make a rule change it impacts a lot of different things and how you interpret that. So I'm excited with them making it more flexible and now it's just a matter of communicating to the group, the environment of small business acquisitions, the exact clarification on that rule so that we can take that and do transactions a lot smoother.

So I'm excited of that hopefully expanding to more flexibility, more liquidity and ultimately more options for buyers and sellers.trying to work through with the buyer and the seller, but very attractive business. They got a lot of offers on that one. So that was a fun one.