We all have business and career regrets. If we only knew then what we know now, we would have made different decisions. Hindsight can be a cruel teacher. If we only took advantage of that opportunity – but sadly, we didn’t.
The good news is, for every one of these missed opportunities we get smarter and grow through wisdom. We won’t miss the next one. We’ll see what others miss- and profit from the decision.
Your next window of prosperity may be open right now. If time is right for you and your family, the decision could be life-changing. It’s not just your life that can change for the better, it’s your spouse, your parents, your kids. Hit it big, and generational wealth will be passed down to your grandkids.
We’re talking about the opportunity to buy into a franchise. Due to government incentives and other favorable conditions, this may be the best time in history. That’s not just conjecture, I’ve got facts.
Low Prime Interest Rate
The prime interest rate serves as a base rate that banks charge their preferred customers and it serves as the floor for all lending. The current prime rate stands at 3.25% – and that’s historically low. For comparison:
December 2018 was 5.5%
June 2006 was 8.25%
November was 1988 10.5%
June 1984 was 13%
December 1980 was 21.5%
In fact, it’s the lowest it’s ever been. In the months following the recent public health crisis, the government was so terrified that the economy would crash, they bottomed out Federal interest rates to encourage commerce. That was on March 16, 2020, and it has remained the same since. This means you can borrow cheap money to buy a franchise. Your debt service will be lower or you can buy a better business.
US Government Will Pay Your Principal and Interest
It sounds too good to be true, but it’s not. If you obtain an SBA loan, (7(a), 504, and Microloans) the government will pay up to 3 months of your principal and interest. So for the first ninety days, you can focus on getting your new business up and running without looming debt service. It’s a huge advantage to the franchise buyer and also unprecedented.
Rollovers as Business Start-ups (ROBS)
Many people don’t know this program exists. Rollovers as business start-ups (ROBS) are when prospective business owners use their 401(k), IRA, or other retirement funds to pay for starting a new franchise business. It’s a great program because using your own funds to start a business is among the best investments you can make – because you directly influence the outcome. Furthermore, you can eliminate or reduce your need to take a business loan, thus not paying interest or putting your assets at risk.
Less Money Down
SBA loans typically require less down payment than traditional loans. Because the SBA-backed loans are up to 90% guaranteed for the lender, the borrower has to come up with less cash upfront. While traditional loans can require 20-30% down, SBA loans can be obtained for as little as 10% down. Navigating SBA products can be complicated, and my advice is to work with a lender that specializes in SBA products – not every banker does.
Uncle Sam is doing his part. He wants you to start a business. I haven’t seen incentives stack up since I started my franchise matching business 28 years ago. I’m fairly confident that we’ll look back at this time in history and admire those that had the courage and foresight to explore business ownership. The window of opportunity is open now. The only question is, for how long?