(The Smart and Savvy Exit) Leaving the Business Without Selling - Ellen McIlhenny

Ellen McIlhenny - The Smart and Savvy Exit – Leaving the Business Without Selling

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INTRODUCTION
Starting this week, the $28.6 billion Restaurant Revitalization Fund designed to provide grants to restaurants that have suffered through the COVID-19 pandemic will start taking applications.
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Registration for the program started last Friday.  Once registered, an application can be made for a grant. The application portals opened yesterday.

The National Restaurant Association has created a published a lot of data on how to make the process easier including:

• Key dates
• Link to the application form
• List of required documentation
• What to expect

Eligible businesses are ones that have at least 33% of their receipts from food sales. They also cannot have received the Shuttered Venues Operations Grant, cannot be or be owned by publicly held company, must not be a state or local government owned business, is not permanently closed, is not a non-profit, or is not in bankruptcy unless they have file chapter 11,12 or 13 and has an approved reorganization plan in place. 

The minimum grant can be from $1,000 to $10,000,000.
Franchises can be eligible if the franchisor is publicly held if the franchisor is listed on the SBA Franchise Directory.

Applications will be processed in order of receipt but entities that can certify that they meet the definition of a woman-owned, veteran-owned, or socially and economically disadvantaged small business will be given priority for award if their application is filed within the first 21 days the application is open for submissions.

EIDL loans and grants will not be deducted from the grant.
What can the RRF be used for?

Payroll, Mortgage or rent, debt services, utilities, maintenance, and business supplies for the business.

And best of all – these grants will not be considered income for the company and is added to the basis of the company.
 
Show Objectives - The Why
 
Today I will be talking about exiting the business without selling. Many times, an owner may be ready to retire, but it is not the right time to sell. How can you make that happen?

Key Issues

1. Why would you leave without selling or passing on the business?
2. What do you need to do to get the business ready?
3. What will be my obligation to the business going forward?
4. What will be the business’ obligation to me going forward?
5. Case studies?

    

 Shows 

• Previous: Podcast Episodes 13 – 16 of Season 5 - The Smart and Savvy Exit – An Interview with Rob Youngblood – Rob and I talked possibly writing a book after the sale of your business, and do you do that.

Find My Podcast at https://pod.co/future-financial-confidence-with-ellen-mcilhenny
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Next Week: Management Buy-Outs.

Resources:
Written by Ellen McIlhenny 
Owner of CFO Plus Services, a Fractional CFO services firm which also offers Back Office Bookkeeping Services.  Author of the business novel The Big Turnaround; How Bad Management Nearly Destroyed an Exceptional Company. Check it out at https://thebigturnaround.com


You can connect with Ellen on any of her #cfoplusservices platforms or ellen@cfoplusservices.com
https://cfoplusservices.com
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