Well, I'm learning that once you get that SBA loan application in, the purchase process becomes something of a waiting game.
The broker, Gary, is still hopeful that the sale will close in early July, but to me, it's looking like a few weeks later than that. We'll see, maybe he can work some magic.
The first part of the loan process is the underwriting. My underwriter is named Joanna, and it's her job to look over all the numbers associated with the business and the sale, and make sure the loan is sensible. I spoke with Joanna via telephone today, and she let me know that she would likely be approving my loan tomorrow!
After that the banker, Jessica, says the loan should take 30-45 days to go through all the channels for SBA approvals. See what I mean about this not closing in early July?
On Tuesday, I met with my CPA, Kyle, to discuss some basics of what I need to know as I take over the business. We talked about what sorts of things can be paid for through the business, and whether or not I should keep the current Quickbooks chart of accounts or start from scratch. I decided to go with a wait-and-see approach for now. I get the feeling from the current owner, Carl, that he is very happy with his current bookkeeping system, so it may be completely satisfactory. In that case, no need to pay people to set up a new one. I'll keep my fingers crossed.
I verified with Kyle that the future business can legally reimburse me for expenses I've incurred during the purchase process, such as LLC filing and license fees. That is indeed the case, and I'm now keeping track of all expenses carefully. It had slipped my mind that I can also be reimbursed for all my business-related mileage during the last two months. Last night I sat down, went back through my calendar, and entered all this mileage into a new little notebook I'm now keeping in my car for this purpose. Over $125 so far just in mileage to meetings! It adds up quickly.
Also this week, I applied to the OLCC and to the City of Salem for my liquor license. More paperwork, more fees. The process is somewhat convoluted but not difficult. You fill out a packet of information and take it to the OLCC. They give preliminary approval, and give you a smaller packet to take to the Permits department at Salem City Hall. Then, the license must be approved by the City Council, which takes about 30 days. Last, you return to the OLCC with the approval and they issue a temporary license.
Finally, I purchased health insurance for myself through Health Republic, a new co-op insurance company set up following the implementation of the ACA. The company is a non-profit, and I like their style. This is my first time actually choosing my own insurance, rather than having insurance through an employer. I chose the most deluxe "Foundation Care" plan, with low co-pays and lots of coverage, but I chose the "Silver" level, which means lower monthly premiums but a fairly high deductible. I felt it was the best fit for me, considering my young age and good health.
On tap for me this week: RELAX and wait. I'll be cleaning house a bit and going through my wardrobe. I've only recently realized I've always had a job where it was totally OK to dress like a slob. You may find me scouring the racks at TJMaxx and Marshalls, searching for some clothing upgrades.
Love to you all. Amy
The broker, Gary, is still hopeful that the sale will close in early July, but to me, it's looking like a few weeks later than that. We'll see, maybe he can work some magic.
The first part of the loan process is the underwriting. My underwriter is named Joanna, and it's her job to look over all the numbers associated with the business and the sale, and make sure the loan is sensible. I spoke with Joanna via telephone today, and she let me know that she would likely be approving my loan tomorrow!
After that the banker, Jessica, says the loan should take 30-45 days to go through all the channels for SBA approvals. See what I mean about this not closing in early July?
On Tuesday, I met with my CPA, Kyle, to discuss some basics of what I need to know as I take over the business. We talked about what sorts of things can be paid for through the business, and whether or not I should keep the current Quickbooks chart of accounts or start from scratch. I decided to go with a wait-and-see approach for now. I get the feeling from the current owner, Carl, that he is very happy with his current bookkeeping system, so it may be completely satisfactory. In that case, no need to pay people to set up a new one. I'll keep my fingers crossed.
I verified with Kyle that the future business can legally reimburse me for expenses I've incurred during the purchase process, such as LLC filing and license fees. That is indeed the case, and I'm now keeping track of all expenses carefully. It had slipped my mind that I can also be reimbursed for all my business-related mileage during the last two months. Last night I sat down, went back through my calendar, and entered all this mileage into a new little notebook I'm now keeping in my car for this purpose. Over $125 so far just in mileage to meetings! It adds up quickly.
Also this week, I applied to the OLCC and to the City of Salem for my liquor license. More paperwork, more fees. The process is somewhat convoluted but not difficult. You fill out a packet of information and take it to the OLCC. They give preliminary approval, and give you a smaller packet to take to the Permits department at Salem City Hall. Then, the license must be approved by the City Council, which takes about 30 days. Last, you return to the OLCC with the approval and they issue a temporary license.
Finally, I purchased health insurance for myself through Health Republic, a new co-op insurance company set up following the implementation of the ACA. The company is a non-profit, and I like their style. This is my first time actually choosing my own insurance, rather than having insurance through an employer. I chose the most deluxe "Foundation Care" plan, with low co-pays and lots of coverage, but I chose the "Silver" level, which means lower monthly premiums but a fairly high deductible. I felt it was the best fit for me, considering my young age and good health.
On tap for me this week: RELAX and wait. I'll be cleaning house a bit and going through my wardrobe. I've only recently realized I've always had a job where it was totally OK to dress like a slob. You may find me scouring the racks at TJMaxx and Marshalls, searching for some clothing upgrades.
Love to you all. Amy