King & King Business Advisors

I encourage all of you who are interested in buying a business to check out the information on SBA loans that can be found on the Small Business Development Center Network website http://www.sbdc-wmd.com

Below you will find some information on the Low-Doc SBA loan program.

King & King can help you find the right business and get it financed.

SBA’s LOW-DOC PROGRAM

Deals Under $150K
Principals can not have any Police Record
Guaranty Fee - 2-3% of Guaranty Amt - paid by Customer (can be financed)
No Set Equity %
Can’t use for refinancing old debt
2 Page Application
SBA agrees to notify the bank of approval/denial within 3 days of submission
Documentary Requirements still require Proformas, Personal Financial Statements, and Tax Returns
Bank Initiates Request to SBA - Bank Must Be “On-Board”
Interest Rate Charged - Bank’s Market Rate with the following caps:
7 yrs & up - NY Prime plus 2.75%
Less than 7 yrs - NY Prime plus 2.25%
Loans under $50K may carry a higher Interest Rate

For more information please call us or send an email to jking@kingandkingllc.com.

We have openings for business brokers. We will train you for your new career in business brokerage.

King & King can help you to use the Patriot Express program to achieve your entrepreneurial goal to purchase a business. If we don’t have your business in inventory we will coop with other brokers to find you a business or we will launch a direct mail/telephone campaign to find you a business to buy. If you have a business for sale we will market your business to Patriot Express candidates. Read this article below from the Office of Small Business Administration:

SBA’s Patriot Express Loan Initiative Over $100 Million and Counting

More Than One Thousand Loans Go To
Military Service Members, Veterans, and Spouses

WASHINGTON, D.C. – In the eight months since its launch, the U.S. Small Business Administration’s Patriot Express Loan Initiative has produced 1,007 SBA guaranteed loans amounting to more than $100 million, with an average loan amount of nearly $101,000, the SBA announced today.

“Each day sees the number of Patriot Express loans rise and the number of participating lenders, currently more than 773 nationwide, rise as well,” said
SBA Administrator Steve Preston. “We thank these lenders, and those coming
aboard, for their special efforts on behalf of entrepreneurial veterans and others in our military community.”

The Patriot Express initiative builds on the more than $1 billion in loans SBA guarantees annually for veteran-owned businesses, and the counseling assistance and procurement support it provides each year to more than 100,000 veterans, service-disabled veterans and Reserve members.

“We have received a remarkable amount of support for Patriot Express from the lending and military communities since we launched the program,” said Preston. “It is important for us to continue to support our servicemen and women. I am particularly appreciative of the news media’s efforts in big cities and small towns alike, to get the word out on this vital program that helps vets and our military community as it grows day by day.”

Patriot Express is a streamlined loan product based on the agency’s highly successful SBA Express Program, but with enhanced guaranty and interest rate characteristics.

Loans are available up to $500,000 and qualify for SBA’s maximum guaranty of up to 85 percent for loans of $150,000 or less and up to 75 percent for loans over $150,000 up to $500,000. For loans above $350,000, lenders are required to secure all available collateral to back the loan and may obtain collateral for smaller loans depending upon individual bank requirements.

Interest rate maximums for Patriot Express loans are the same as those for regular 7(a) loans: a maximum of Prime + 2.25 percent for maturities under seven years; Prime + 2.75 percent for seven years or more. Interest rates can be higher by two percent for loans of $25,000 or less; and one percent for loans between $25,000 and $50,000.

Patriot Express is available to military community members including veterans, service-disabled veterans, service members leaving active duty, Reservists and National Guard members, current spouses of any of the above, spouses of active duty members, and the widowed spouse of a service member who died during service, or of a service-connected disability.

The Patriot Express Pilot Loan Initiative can be used for most business purposes. Details on the initiative can be found at www.sba.gov/patriotexpress.

Patriot Express loans have been approved in all 50 states, the District of Columbia, the U.S. Virgin Islands, Puerto Rico and Guam and currently range from $5,000 to $375,000 in individual loan amounts. After loan applications are approved by the bank, they are submitted to SBA for approval. Most applications are approved by SBA within 24 hours.

# # #

Editor’s Note:
1. Web-based press kit:
http://www.sba.gov/patriotexpress/SBA_PATRIOT_PRESS_KIT.html.

2. List of Approved Patriot Express Lenders:
http://www.sba.gov/idc/groups/public/documents/sba_program_office/bank_hig
h_paatriotexpress_06.xls

The SBA provided chart should help you to determine which SBA program is right for you.

Link to SBA Loan Chart

Excerpted from Office of Small Business Administration Office of Advocacy’s FAQ

How important are small businesses to
the U.S. economy?
Small firms:
• Represent 99.7 percent of all employer fi rms.
• Employ about half of all private sector employees.
• Pay more than 45 percent of total U.S. private payroll.
• Have generated 60 to 80 percent of net new jobs annually
over the last decade.
• Create more than half of nonfarm private gross domestic
product (GDP).
• Supplied 22.8 percent of the total value of federal prime
contracts in FY 2005.
• Hire 40 percent of high tech workers (such as scientists,
engineers, and computer workers).
• Are 52 percent home-based and 2 percent franchises.
• Made up 97 percent of all identifi ed exporters and produced
28.6 percent of the known export value in FY 2004.
• Small innovative fi rms produce 13 times more patents
per employee than large patenting fi rms, and their patents
are twice as likely as large fi rm patents to be among the one
percent most cited.
Source: U.S. Dept. of Commerce, Bureau of the Census; Advocacy-funded
research by Kathryn Kobe, 2007 (www.sba.gov/advo/research/rs299tot.
pdf); Federal Procurement Data System; Advocacy-funded research by CHI
Research, 2003 (www.sba.gov/advo/research/rs225tot.pdf); U.S. Dept. of
Labor, Bureau of Labor Statistics, Current Population Survey; U.S. Dept. of
Commerce, International Trade Administration.