Nora Chapman’s story was typical of most business owners who have made the tough decision to leave their companies. At age 54, she was confident in finding a meaningful second act and was ready to leave her 25-employee advertising business. Nora was thinking of selling to one or two of her key employees and when we met her, her first question was: “Is this the right exit choice?”
Tag Archive for Small Business Administration
Small Business Administration Approves Operating Company Bank Financing Where Self-Directed IRA Account Holder Provides Personal Guarantee
On September 17, 2014, the Small Business Administration agreed to provide its credit enhancement guarantee in an Arizona bank’s financing transaction involving self-directed IRA investment in a startup operating company arrangement. This is an important development in the retirement plan industry where the self-directed segment consists of a growing $130 billion in plan assets. Moreover, it is well known SBA ERISA policy considerations frequent Department of Labor policy considerations.
Recent events in the courts and academic journals cast an unfavorable hue over such prospects. First, the United States Tax Court issued two 2013 decisions in Peek and Ellis distilling disqualified person operating company investment as a self-directed ERISA plan weak-form fiduciary abuse. The consequence was straightforward: the Read more