By now you’ve heard of a few changes happening within the SBA including the discontinuation of lending to those under the age of 11 (sorry, had to get that in), and prohibiting any foreign entities from benefitting from SBA financing on any level. When looking back, we found that only 2 of our closings in 2024 would have been affected by this rule change, and none in our current pipeline (which continues to grow in 2025). SBA is also cutting certain other programs and here’s what I can tell you about these cuts. I’ve researched the new administrator of the SBA, Kelly Loeffler, and from everything I could find, she is focused on the growth and support of main street businesses. Here is a direct quote from Kelly “The agency will return its focus to its founding mission of empowering job creators, delivering disaster relief, and driving economic growth”. You can read Kelly’s entire Day One Memo HERE! Recognizing that small businesses drive the job creation in America, I expect our 7a program to not only continue but to expand over the coming months and years.

When you hear about the fraud and abuse of SBA funds, it’s not typically coming from SBA’s 7a flagship program, it comes mostly from outreach programs designed for less secure applications with little to no credit or cash flow history. Our 7a program generates most of the income used to support these lower-level loan requests, which typically have much higher default rates. Long story short—We see nothing but dedication from the SBA to help increase financing for our main street and middle market transactions. I would also not be surprised if we see the increase in loan limits that I continue to advocate for, raised above $5MM during 2025.

Our first quarter’s volume is up and we’re currently seeing an increase in transactions in every industry. Last year was a slow year for our firm and an even slower final few months approaching the election. Since January 1st we’ve seen a tremendous uptick in broker activity across the country. Offices that performed valuation after valuation last year only to be told I think I’ll wait to list my business, are seeing many of these listing agreements being signed. Sellers seem to be coming to the market in droves and it’s happening everywhere. Buyers have a renewed level of confidence in the economy and the business futures have brightened up.

The business buyers and sellers in today’s markets seem to be ready to move quickly for the right deal with less hesitation than previously. Interest rates have become the norm at ~10% currently as lower rates were now years ago. We suggest that every broker that met with any possible listings last year, revisit with each and secure those selling contracts. Spring is upon us and the markets are heating up. Prepare your office today for the increase in volume and let’s get back to work.

Please “Like” and support us as you see our posts and social media, and please share with anyone who can benefit from our services. Diamond Financial needs transactions to continue to support our industry and provide valuable main street broker information.

You can reach out directly to me at Stevem@easysba.com or my direct dial at 919.376.2922.

I hope today’s letter was informative and please feel free to share with anyone that you believe can benefit from it. We’re dedicated to the success of the intermediary.

Steve Mariani

Owner, Diamond Financial Services 

(888) 238-0952

Let’s Get Started!