$2,300,000 – SBA 7a Western Wear Retail Biz Acquisition

This recent SBA 7(a) loan closing involved the successful sale of a well-established retail store specializing in western wear in Fort Myers, Florida. This store, which had been operating for over 50 years, was a prominent name in the Florida retail landscape since the 1970s. As one of the largest independent retailers of Western wear in the state, it consistently generated impressive annual revenues exceeding $3 million, with net profits surpassing $900,000.

The buyer (who was referred by one of our top-producing South Florida business broker affiliates) was an out-of-state client who aspired to purchase and operate the business. However, the Small Business Administration (SBA) 7(a) loan program restricts funding businesses that are passively managed. To comply with SBA guidelines, we needed to demonstrate that the client would relocate to Florida and take on a primary leadership role in the store’s future management.

To fund the acquisition, the buyer utilized a Rollover for Business Startups (ROBS), a program that allows entrepreneurs to access their retirement savings to invest in a new business without incurring early withdrawal penalties or tax consequences. The ROBS program works by rolling over funds from a retirement account, such as a 401(k), into a new 401(k) plan set up for the business. The new 401(k) plan then purchases stock in the company, providing the necessary capital to start or acquire the business. This strategic financial move allows the buyer to invest in the business without liquidating assets or draining their bank accounts of cash balances.

At the end of the transaction, we were presented with an additional challenge – the buyer being out of the country during the closing. Despite the chaos that can often ensue during the final closing stipulations of a complex commercial loan, we were able to close successfully by leveraging our expertise and ability to find creative solutions. Once we make a commitment, we pride ourselves on being problem solvers who go above and beyond to ensure your loan closes and that you are completely satisfied with your transaction. In fact, our dedication to client satisfaction is reflected in our rave reviews— all 5 stars on Google —demonstrating our track record of excellence in delivering successful outcomes for our clients and business broker affiliates.

Let it be known – we’re in the business of making smart business WORK! And right now, the SBA has been making it even easier for you to buy a business thanks to new and revised rules. If you’re tired of getting the run-around from other banks or lenders, give us a call today for details at (888) 959-1648 or email us at info@comcapfl.com to discuss how we can help you close the best loan for your requirements, faster than anyone else.

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