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Failed Franchises Measured by SBA Loan Failure Rates

Failed Franchises Measured by SBA Loan Failure Rates

Sounds like strong language.  Thanks to our friends at thefranchisehound.com we have a list of SBA Loan Failure Rates for loans doled out to franchised businesses.  An important disclaimer is that the list is not the actual failure rates of franchisees for a the listed franchises, it is only a list of SBA Loans gone bad that were given to franchisees of the franchises.  Note that even 3 of 14 SBA loans to McDonald’s franchisees … Read entire article »

Filed under: Franchises, SBA

Condemnation Clauses for Commercial Leases

Condemnation Clauses for Commercial Leases

The Condemnation clause is an often overlooked clause in negotiating a commercial lease.  Even though it rarely comes in play, it is well worth negotiating just in case to protect the many years of blood, sweat and tears a lessee/business owner has put in to the business.  A condemnation clause dictates how compensation to the property owner is allocated to the tenant(s) at the property in the case that the property is seized via eminent … Read entire article »

Filed under: Business Tips, Commercial Leasing, Landlord, Negotiation

1031 Exchange for A Business?

1031 Exchange for A Business?

Business owners often ask us, and the answer is Yes, a 1031 exchange for a business is possible.  The reason business owners ask if it is possible, is they often want to exchange a business for an investment property. But, they are very rare to pull off for many reasons.  However, the exchange must be like kind, so business assets can not be exchanged for an Industrial property, or any other real property for that matter. Businesses … Read entire article »

Filed under: Business Tips

Why You Can’t Get an SBA Loan

Why You Can’t Get an SBA Loan

People complain that securing an SBA loan is too difficult.  There are many factors at play, here we consider the impact of a Borrower’s Business Experience on their qualifications. In the early part of the past decade, as the economy grew at astronomical rates, the rate at which business bank loans went bad shrunk to and hovered at minuscule levels.  Once this failure rate was super low for too long, enforcement of the experience criterion became … Read entire article »

Filed under: Business Tips, SBA

Small Business Due Diligence – Verifying Seller’s Tax Returns via IRS 4506

Small Business Due Diligence – Verifying Seller’s Tax Returns via IRS 4506

When trying to buy a small business, it is important to do your Due Diligence to gauge the suitability of the business to your needs, and to make you are paying the appropriate price for the business.  One important step is to verify the tax returns that have been filed by the owner of the business.  Of course, if the seller hands you copies of the Tax Returns, should you just automatically assume that they … Read entire article »

Filed under: Business Tips, Due Diligence