Month: April 2020

Important Time-Sensitive Incentive for Buyers Considering an Acquisition Now

If you are considering a business acquisition, the recently-passed CARES Act contains an important benefit you may not have heard about.  It has not received a lot of publicity. The Act provides for a special subsidy for all outstanding Section 7(a) loans from the SBA.  It covers loans existing when the bill became law and also loans made within six months after it became law. This is a significant benefit.  For example, for a $1,000,000 loan with a seven-year maturity, it would represent a subsidy of over $86,000.  For a five year $1,000,000, the benefit would be over $114,000.  This … Read more

Westbridge Capital Acquires SCOPES Facility Services

Westbridge Capital Ltd. (Westbridge), a Canadian private equity management company,  has acquired Scopes Facility Services, Inc. (Scopes), a floor care and landscaping provider. Scopes operates in multiple states, providing commercial services to over 7,500 retail locations on behalf of two of the largest retail chains in the United States. “Scopes fits our acquisition criteria perfectly – 27 years of continuously profitable operations is an enviable track record, we intend on working with Kevin Williams as incoming CEO to build on this record of success” said Michael Meekins, President of Westbridge. Meekins continues, “we are also very happy to have Jason … Read more

Heritage Launches New Brand, HLS Outdoor, in the Midwest

Heritage Landscape Supply Group

Heritage Landscape Supply Group, Inc. (“Heritage”) announced today the debut ofhas launched a new brand HLS Outdoor and opened its first branch location at 9300 75th Avenue N., Suite 200, Brooklyn Park, MN 55428 to benefit local green industry professionals.  This new location will carry a full line of irrigation & landscape supplies, outdoor lighting, agronomics, sports field materials, tools & accessories, and other complementary products.  HLS Outdoor’s new Brooklyn Park location is equipped with over 20,000 sq. ft. of warehouse, showroom, and training space. The Brooklyn Park location will be led by a veteran team with a collective 200+ years … Read more

Important Opportunities for Existing SBA Borrowers

Businesses that have existing SBA Section 7(a)  and 504 loans should be aware of two opportunities  that have arisen for them.  Many small business acquisitions include an SBA 7(a) loan. First of all, SBA lenders have been reminded that they may assist borrowers under Section 7(a) and 504 experiencing temporary cash flow issues by deferring payments for a stated period of time.   They are allowed to offer deferrals of up six months.  Many SBA loans are sold on the secondary market.  SBA lenders are authorized to grant deferments of up to three months for loans sold on the secondary market … Read more

Debt Relief under the CARES Act for SBA Borrowers.

SBA Payment Subsidy

One thing that has not been heavily publicized about the federal government’s stimulus and relief programs  may have a positive impact for those who have obtained SBA loans for business acquisitions or other purposes. Under the CARES Act, in general, the SBA will make the principal and interest payments due on existing SBA loans (and new SBA loans, other than Paycheck Protection Program and Economic  Injury Disaster Loans that have separate subsidies made through September 27, 2020) for a period of six months.  While this subsidy is conceptually for businesses harmed by the COVID-19 Pandemic, the Act includes language that … Read more