Bank of America Launches CPA Financing Program
Bank of America has begun offering financing to CPA firms to help them fund mergers and acquisitions, expand their facilities, buy equipment and software, and other purposes. The program began earlier this month and offers loans of up to $1 million. John Fiore, senior vice president of practice solutions at Bank of America, said the bank has already given out its first loan, for $200,000, to one firm.
The Bank of America Practice Solutions program for CPAs will provide financing for practice sales and purchases, office improvements and expansion, business debt consolidation, equipment financing, lines of credit and commercial real estate. For equipment and software financing, the express loan program ranges from $10,000 to $75,000, with up to 84 months on secured loans. Up to $10,000 in travel expenses can be included in the loan.
For practice sales and acquisitions, the loan size goes up to $750,000. The bank is also offering customized loan amounts that provide up to 70 percent financing for a practice owner, or 50 percent for a first-time business owner. Repayment options include 12 months of interest-only payments, or up to six months with no payments. In addition, the bank offers fixed rates for up to 10-year terms.
For commercial real estate loans, BofA is offering loans of up to $5 million with fixed terms of up to 25 years. Payment schedules can be for up to 25 years.
In addition, the bank is providing a practice debt consolidation product that can leverage the equity in a CPA practice to upgrade or expand to fund future growth, consolidate bills, and improve cash flow. Financing is available for up to 70 percent of a practice’s revenue. Repayment terms are provided for up to 10 years to keep the payment amounts low. For expansions, remodeling or relocation of existing offices, loan amounts of $50,000 to $750,000 are available,
The goal for the first year of the program is to give out $30 million in loans, according to Fiore.
The offer is available nationwide to CPA firms. In addition to CPA practices, BofA Practice Solutions is also rolling out similar offers to dental and veterinary practices.
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