This article highlights a brief thought process you may be experiencing when evaluating whether to start your own business or buy an existing business. Each path to business ownership is equipped with pros and cons, however buying an existing business has become increasingly popular for several reasons and SBA financing tends to be the perfect fit in many situations.
We recently explored the top performing industries that have utilized the SBA 7(a) Loan Program to secure small-business financing, and among this group, Offices of Certified Public Accountants (NAICS Code: 541211) ranked #18 on our list. Helping more than 3,100 firms from FY2010-2018, accountants have historically found the program to be one of the most popular ways to start or expand operations.
Offices of Lawyers (NAICS Code: 541110) ranked #11 in our latest research on the top 20 performing industries for SBA financing over the last decade. During this period, attorneys received more than 5,800 SBA 7(a) loans totaling roughly $1.15 billion. Attorneys find the 7(a) Program to be one of the most attractive options for financing as a result of the flexibility surrounding the permissible uses of proceeds, such as continuing legal education, refinancing existing debt and working capital to cover case expenses.
In our latest analysis of the top 20 performing industries, Engineering Services (NAICS Code: 541330) ranked #20. From October 1, 2009 to December 21, 2018, engineering firms received 3,058 SBA loans totaling roughly $1.06 billion. While “engineering services” is a broad category covering many types of engineers, the need for capital and the value of SBA financing is similar across all categories.
SBA 7(a) financing is one of the most common ways for small-businesses to access capital for growth and business expansion. As highlighted in our recent articles, these loans offer low interest rates and long repayment terms, but navigating the application process can be difficult for many potential borrowers.
We recently explored some of the most important items to consider when using an SBA loan to help grow your small-business in The Pros and Cons of SBA 7(a) Loans. Although SBA loans may require time and effort, the long-term advantages outweigh the cons for many small-business owners. Specifically, those owners interested in longer repayment periods and lower interest rates.If you’ve made the decision to pursue SBA financing, the application process can seem intimidating in the beginning. However, keeping these four main areas top-of-mind can help you efficiently and effectively navigate the process from start-to-finish.