18 May Clarification of 25% Contribution in a Partner Buyout
As stated in the SBA Standard Operating Procedures (SOP), if the purchase price of a business includes intangible assets in excess of $500,000, the borrower (or seller, in...
Archive
12 May Policy Changes in the SBA SOP 50-10 5(H) That Impact Business Appraisals and Real Estate Appraisals
The SBA has released an updated version of its Standard Operating Procedures (SOP) 50 10 5(H), which is effective May 1, 2015. The following discussion highlights key revisions...
31 Jan Risky Business: Relying on Valuation Rules of Thumb
Rules of thumb can be useful to determine if a proposed business transaction seems reasonable prior to accepting an SBA loan application. However, most businesses are unique, and...
10 Mar Essential Elements to Look For When Reviewing a Valuation
Business valuations compiled for SBA purposes are complex, often containing over 80 pages of financials, projections and analysis. Unfortunately, many readers are tempted to skim the summary page...
03 Sep Depreciation Downfall
Depreciation is not a precise measurement of “reduction in value” from original cost. It is an estimate of the decrease in the useful life of an asset, and...