by Daniel Kittell | Accounting News, News, Newsletter, Small Business
Transferring an SBA loan isn’t a straightforward process. Whether you’re selling your company or planning for a family succession, understanding how to transfer an SBA loan and what’s legally allowed is critical for staying compliant and protecting your finances. In this article, we discuss what you should know about SBA loan transfers, including key rules, approval requirements, and potential pitfalls.
Can You Transfer an SBA Loan?
SBA loans are tied to both the borrower and the business. This means you can’t freely transfer an SBA loan to someone else without meeting specific conditions and obtaining approval from both the SBA and the lender. That said, a buyer or successor can assume the loan and take over responsibility for repayment under certain circumstances. This often comes up during the sale of a small business, a family succession plan, or an internal ownership transition.
Why Transfer an SBA Loan?
Transferring an SBA loan can make financial sense in a few scenarios:
- Business Sale: The buyer of your business may prefer to assume your existing SBA loan rather than apply for a new one, especially if the current loan has a low interest rate.
- Avoid Prepayment Penalties: Keeping the loan in place can help both the buyer and seller sidestep prepayment fees that might apply if the loan were paid off early.
- Family Succession or Ownership Change: In cases where the business stays in the family or shifts to a co-owner, transferring the loan can ensure continuity and reduce the need for new financing.
- Preserve Cash Flow: Assuming an SBA loan allows the new owner to avoid upfront loan origination costs, which helps to preserve more working capital during the transition.
How to Transfer an SBA Loan
- Contact the Lender First
Your first step is to speak with your lender to determine if the loan is eligible for transfer to a new owner. If you have a 504 loan, you’ll contact the Certified Development Company (CDC).
- Submit a Formal Request
If your lender determines that the loan is eligible, both you and the prospective borrower will need to submit a written request that outlines the terms of the proposed transaction. It should also include an explanation of why the loan should be assumed; an analysis of the business’s current financial standing; and details about the new borrower, who must meet SBA eligibility requirements, including the financial ability to repay the loan (they should be prepared to submit personal financial statements, tax returns, a business plan, and other documents that may be requested).
- Get Lender or SBA Approval
For SBA 7(a) loans, the lender often has delegated authority to approve assumptions, which means they can approve it internally. However, larger or more complex transactions could still be submitted to the SBA for approval. For SBA 504 loans, the process is more restrictive and typically involves both the CDC and SBA.
Why a Buyer Might Want to Assume an SBA Loan
From the buyer’s perspective, assuming an existing SBA loan offers several benefits:
- Quicker Access to Financing: Assuming an existing SBA loan can speed up the purchase process by bypassing the lengthy loan approval timeline.
- Potentially Better Loan Terms: The current loan may have lower interest rates or more favorable terms than what’s available in the market today.
- No Need to Start from Scratch: The buyer avoids the hassle of compiling a new loan application, underwriting, and approval process without having to start from square one.
From the current business owner’s perspective, transferring the loan could have key benefits as well:
- Preserve favorable loan terms: If the existing SBA loan has a low interest rate or favorable repayment terms, transferring it can make the overall deal more attractive to the buyer.
- Avoid Prepayment Penalties: Some SBA loans come with prepayment penalties if paid off early, but transferring the loan would allow the seller to avoid those fees.
- Support Familial or Internal Ownership Transfer: If the business is being passed to a family member or business partner, transferring the loan can help maintain the company’s financial stability and streamline the business transfer process.
- Keep More Cash on Hand: If the loan is transferred, the seller can avoid using proceeds from the sale to pay off the remaining loan balance upfront.
Potential Drawbacks
Transferring an SBA loan can be a time-consuming and paperwork-heavy process. Keep in mind that approval isn’t guaranteed, the process can take weeks or sometimes months, SBA loans can only be assumed once (a second transfer is not permitted), and SBA 504 loan assumptions are more limited (they often require more scrutiny).
A successful SBA loan transfer can be a win-win, but it’s essential to consult your lender early and work closely with financial and legal professionals to ensure a smooth transition. Just be prepared for some red tape along the way.
by Daniel Kittell | Accounting News, Construction, Industry - Construction, News, Newsletter, Small Business
As we move through 2025, construction businesses are navigating a mix of challenges and fresh opportunities. A steady economic rebound, higher levels of government investment, and rising demand for infrastructure, housing, and commercial development are driving growth across the industry. Still, growth alone won’t guarantee long-term success. To stay competitive and protect margins, companies will need to adopt emerging trends and innovative technologies. Below, we explore the top 2025 construction trends that could directly impact your business’s bottom line.
Industry Growth Fueled by Recovery and Investment
The construction industry is on track for steady growth in 2025, fueled by ongoing economic recovery and major investments from both public and private sectors. Federal funding is ramping up for infrastructure improvements, renewable energy developments, and affordable housing initiatives. Meanwhile, demand continues to climb in key areas like healthcare, logistics, and residential construction.
- What this means for your business: More demand can open the door to new projects, but it also brings increased competition and added strain on labor and materials. Companies that focus on streamlining workflows and boosting efficiency will be better positioned to stay ahead.
Digital Transformation and Smart Construction
Technology is becoming a core part of the modern job site. Tools like drones, laser scanners, digital plans, and real-time reporting systems are helping teams work more accurately and efficiently, with fewer delays.
- How it helps your bottom line: Using digital tools can reduce costly rework, increase on-site productivity, and shorten project timelines—ultimately lowering expenses and improving your bottom line.
Robotics and Automation Techniques
Robotics are no longer just for the factory floor. In 2025, more companies are turning to automated bricklaying machines, robotic arms for demolition, and autonomous machinery for earthmoving and grading.
- Why it matters: While these technologies can be a significant upfront investment, they reduce labor costs, improve worker safety, and keep projects moving, especially in the face of ongoing worker shortages.
Prefabricated and Modular Construction
Modular and prefabricated building methods involve assembling parts of a project off-site, then delivering and installing them on-site. This trend is gaining traction due to its speed, cost efficiency, and minimal waste.
- Business benefit: Quicker build times lead to faster payments and fewer weather-related setbacks. Modular building is especially ideal for housing, healthcare, and education projects.
3D Printing in Construction
3D printing is making it possible to build entire homes and structures layer by layer using specialized concrete mixes. While still in early stages, 3D printing is proving useful for low-cost housing and custom components.
- Future potential: As the technology matures, it could lower material costs, reduce construction waste, and open doors to affordable, sustainable housing solutions.
Green Building and Sustainability
Sustainability has become a priority, not a preference. More clients are looking for contractors who can deliver energy-efficient buildings using eco-friendly materials and practices that reduce long-term costs and environmental impact.
- Takeaway: Choosing sustainable materials and pursuing green building certifications can set your business apart, especially with clients focused on value, health, and long-term performance.
Smarter Project Management Tools
Cloud-based project management platforms continue to improve communication, scheduling, budgeting, and document sharing between teams. These tools help prevent miscommunication and reduce costly delays.
- Bottom-line impact: Better organization means fewer mistakes, quicker decisions, and more successful projects—keeping profit margins intact.
Advanced Construction Materials and Innovative Methods
Innovations like self-healing concrete, carbon-storing bricks, graphene-enhanced composites, and engineered wood products are gaining attention for their durability and sustainability. While still emerging, these materials may reshape how we think about building performance.
- Why to watch this trend: Staying informed about cutting-edge materials can help future-proof your business and meet changing codes and client expectations.
From automation to sustainability, the trends of 2025 are reshaping how buildings are designed, managed, and built. By adopting the right tools and strategies, you can stay competitive and protect your bottom line.
by Daniel Kittell | Accounting News, News, Newsletter, Retirement, Retirement Savings, Tax Planning - Individual
As markets continue to experience turbulence driven by renewed tariffs, trade tensions, and global uncertainty, you might be rethinking how you save for retirement. One increasingly popular strategy is converting traditional retirement savings into Roth accounts. Although this approach isn’t suitable for everyone, periods of market decline may offer a more financially favorable window to consider such a move. Read on as we discuss this retirement strategy.
Market Volatility Is Reshaping Retirement Strategies
The stock market has been unpredictable lately. Factors like rising interest rates, inflation, and new trade tensions—especially related to tariffs between the U.S. and other countries—have caused ups and downs in investment values. This kind of economic uncertainty can generate doubt about traditional retirement savings plans.
As a result, more people are looking for ways to take advantage of the current market conditions. One popular strategy is to convert traditional retirement savings to a Roth IRA. Doing a Roth IRA conversion when the market is down can help you save on taxes in the future and make the most of a tough market situation.
What Is a Roth IRA Conversion?
A Roth IRA conversion means moving money from a tax-deferred account—like a Traditional IRA or 401(k)—into a Roth IRA. When you do this, you’ll owe regular income taxes on the converted amount for that year. Once in the Roth IRA, your investments can grow without being taxed, and you won’t pay taxes on eligible withdrawals during retirement.
Unlike traditional retirement accounts, Roth IRAs don’t require you to take minimum distributions (RMDs) each year, giving you more control over your money and tax planning later in life.
Why Market Downturns Make Roth Conversions Attractive
When the stock market drops, the value of your retirement investments often goes down too. While that might feel discouraging, it can actually be a smart time to consider a Roth IRA conversion.
Here’s why: when you move money from a Traditional IRA or 401(k) into a Roth IRA, you have to pay taxes on the amount you convert. If your investments are temporarily worth less because of the market downturn, you’ll pay taxes on a smaller amount. Then, when the market recovers, your investments can grow tax-free inside the Roth account.
For example, let’s say your retirement portfolio is worth $100,000, but a market drop brings it down to $80,000. If you convert while the account is lower, you’ll pay taxes on $80,000 instead of $100,000. Later, when the value grows back, you won’t owe taxes on that growth.
It’s a way to turn short-term losses into long-term gains—especially if you believe your investments will recover and grow over time.
Key Considerations Before Converting
While a Roth IRA conversion can be a smart move, it’s not always the right choice for everyone. Several factors should be evaluated before making a decision:
- Current vs. Future Tax Bracket
If you expect to be in a higher tax bracket later in life—either due to RMDs, Social Security benefits, or changes in tax law—converting now at a lower tax rate can be beneficial. On the other hand, if you anticipate a lower income in retirement, the upfront tax cost may outweigh the benefits.
- Ability to Pay the Taxes
Ideally, you should pay the conversion taxes using funds outside of your retirement account. This lets you keep your retirement savings intact and growing tax-free. Using your IRA or 401(k) to pay taxes could reduce your future retirement income and may even result in penalties if you’re under 59½.
- Long-Term Time Horizon
A Roth conversion generally works best when your money can stay invested for many years. This gives your investments time to grow without tax. Because of this, it’s usually more effective for younger savers or anyone who doesn’t need to tap into their funds for at least 10-15 years.
Is Now the Right Time?
With the current ups and downs in the market, this could be a smart time to consider moving funds into a Roth IRA. If your investments have temporarily dropped in value, converting now might reduce the taxes you’ll owe and allow more room for tax-free growth later.
That said, retirement decisions depend on your unique situation. Speaking with a financial planner or tax expert can help you weigh the pros and cons and decide if a Roth conversion supports your long-term financial strategy.
by Daniel Kittell | Accounting News, Business Growth, Industry - Professional Services, News, Newsletter, Professional Services, Small Business
The professional services industry is undergoing a significant transformation in 2025, driven by rapid advancements in AI and automation. As firms seek greater efficiency, enhanced decision-making, and improved client service, AI-powered solutions are reshaping how businesses operate by streamlining operations, optimizing resources, and ultimately boosting profitability. Here’s how AI and automation are shaping the professional services sector in 2025.
AI-Powered Digital Assistants Improve Productivity
One of the most immediate ways AI is transforming professional services is through generative AI-powered digital assistants. These smart tools manage repetitive, time-consuming tasks, allowing professionals to focus on high-value activities.
- Appointment Scheduling: AI can automatically schedule meetings, send reminders, and reschedule conflicts without human intervention.
- Report Generation: AI-powered tools can compile and analyze large datasets to generate detailed reports in seconds.
- Data Retrieval: Instead of manually searching for files, AI can instantly pull relevant data and summarize key insights.
By reducing administrative burdens, firms can increase efficiency, reduce operational costs, and allow professionals to focus on client service and strategic initiatives.
AI in Finance: Enhancing Productivity, Strategy, and Compliance
AI is also transforming financial management within professional services firms by enabling CFOs and finance teams to take a more proactive and strategic role.
- Advanced Forecasting: AI analyzes real-time financial data to predict future trends, cash flow fluctuations, and investment risks.
- Compliance Monitoring: AI-powered systems can detect anomalies, fraud, and compliance risks in financial transactions before they become major issues.
- Enhanced Decision-Making: AI-driven insights help finance teams optimize resource allocation and improve profitability strategies.
In 2025, finance leaders must go beyond simple automation and use AI to drive productivity, ensure compliance, and support business growth.
Integrated Talent Management
To attract and retain top talent, organizations are prioritizing end-to-end talent management platforms that span the employee lifecycle—from hiring to retirement.
These platforms leverage AI and automation to create a seamless workforce experience, including:
- AI-driven performance tracking and analytics to assess employee engagement.
- Automated learning and development programs tailored to individual career paths.
- Predictive analytics to anticipate workforce needs and reduce turnover.
By integrating HR, performance management, and workforce planning into a single AI-powered system, firms can improve talent retention, reduce hiring costs, and boost employee satisfaction.
AI-Powered Recruitment and Onboarding
Recruiting and onboarding processes are being dramatically improved with AI-driven solutions that help firms find and retain top talent more efficiently.
- AI Resume Screening: AI tools can quickly scan and analyze thousands of resumes, identifying the most qualified candidates based on job requirements, reducing the need for manual review by HR personnel.
- Automated Interview Scheduling: AI-powered scheduling tools coordinate interviews without the need for email communication, which shortens the time it takes to complete the hiring process.
- Onboarding Acceleration: AI-driven chatbots and digital assistants guide new hires through paperwork, company policies, and training programs, getting them acclimated quickly while minimizing the need for HR teams to spend extensive time on repetitive tasks.
- Optimized Workforce Planning: AI analyzes hiring trends and workforce data to help companies make data-driven hiring decisions, preventing over-hiring or under-hiring and ensuring cost-effective workforce scaling.
With AI-powered recruitment and onboarding, firms can reduce hiring time and administrative expenses, streamline HR operations, and improve overall workforce efficiency as well as the employee experience.
Flexible Workforce Models Gain Traction
The rise of AI and automation is also pushing professional services firms to adopt more flexible work models. Many firms are embracing the gig economy and using freelancers or independent contract workers to fulfill project-based needs.
- On-Demand Hiring: AI-powered platforms match firms with skilled freelancers or contract workers for short-term projects.
- Scalability: Businesses can scale their teams up or down as needed, improving cost efficiency and responsiveness.
- Hybrid Workforces: AI helps manage remote, in-office, and freelance employees, ensuring smooth collaboration across different work arrangements.
By leveraging flexible workforce models, which tend to be a good fit for professional services, firms can remain competitive and cost-effective in an evolving industry landscape.
By integrating AI into daily operations, professional services firms can boost efficiency, improve decision-making, and foster long-term success in 2025.
by Daniel Kittell | Accounting News, News, Newsletter, Retirement
Medicare is undergoing significant changes in 2025, impacting costs, prescription drug coverage, telehealth access, and caregiver support. Retirees should prepare for these updates to manage their healthcare expenses effectively. Below, we break down the key Medicare changes for 2025 and what they mean for beneficiaries.
Higher Costs for Medicare Parts A and B
Medicare costs are rising in 2025, impacting premiums, deductibles, and potential out-of-pocket expenses for beneficiaries. The Part A deductible—which covers hospital stays, skilled nursing facility care, inpatient rehabilitation, and hospice services—increased from $1,632 to $1,676, while the Part B deductible—which covers doctor visits, outpatient care, and preventive services—went up from $240 to $257.
Although most seniors don’t pay a premium for Part A, Part B requires a monthly premium, which increased from $174.70 last year to $185.00 this year. However, higher-income beneficiaries may pay significantly more—up to $628.90 monthly.
In addition to these costs, Part A and Part B include copayments and coinsurance, which can further impact healthcare expenses. Understanding these changes can help you budget for medical costs and avoid unexpected expenses.
Cap on Out-of-Pocket Prescription Drug Costs
A major win for retirees in 2025 is the implementation of a $2,000 cap on out-of-pocket prescription drug costs under Medicare Part D. This is part of the Inflation Reduction Act, designed to reduce the financial burden of high-cost medications.
Previously, there was no cap on what retirees paid for prescriptions. Under the new rule:
- Once a retiree reaches $2,000 in out-of-pocket drug costs, Medicare will cover the rest for the remainder of the year.
- This change eliminates catastrophic coverage phase expenses, reducing financial strain for those needing costly medications.
Seniors with high prescription drug costs should explore Medicare Part D plans that align with their medication needs.
Expiring Telehealth Benefits
Telehealth services became widely accessible during the COVID-19 pandemic, but Medicare’s expanded telehealth benefits are set to expire at the end of 2024 unless Congress takes further action.
- In 2025, Medicare beneficiaries in rural areas may face limitations on virtual care access.
- Some telehealth services will no longer be covered for patients receiving care at home.
- Many mental health and specialist consultations may require in-person visits instead of virtual appointments.
Retirees who frequently use telehealth should check with their providers before these changes occur.
Additional Resources for Family Caregivers
Medicare is increasing support for family caregivers, who often provide essential care to aging relatives. Expanded benefits include:
- Inpatient respite care programs for beneficiaries receiving hospice services. To reduce caregiver burnout, the patient receiving hospice care can stay in a Medicare-approved facility for up to five days at a time.
- Training and education for family members assisting with medical care. This includes medication administration, personalized care techniques, and more. Medicare covers some of this training, but the beneficiary is responsible for 20% of the Medicare-approved amount plus the Part B deductible.
- Access to support groups and counseling services.
New Medicare Program for Postal Service Retirees
Starting this year, U.S. Postal Service retirees will transition to a new Medicare program under the Postal Service Health Benefits (PSHB) system. The program aligns postal retirees with standard federal employee retirement healthcare policies and may reduce the costs for some retirees by integrating benefits between Medicare and their federal health plan. Eligible retirees are required to enroll in Medicare Part B for continued health coverage.
