Ft. Lauderdale, FL, May 29, 2025 - As the U.S. faces a tidal wave of small business ownership transitions, a new white paper from Polymath Partners offers a bold solution to a growing economic challenge. “Breaking the Bank: How Innovative Tax Credits Can End SBA Dependency and Ignite the Small Business Economy” proposes a novel, revenue-neutral policy aimed at empowering sellers, expanding access to capital for buyers, and reducing reliance on SBA-guaranteed loans.
Authored by James Barchiesi, Executive Chairman of Polymath Partners, the paper introduces the Seller-Financed Business Sale Tax Credit (BSTC)—a tax-based solution that shifts liquidity and control from government-backed lending to the business owners themselves.
“We’re on the verge of a generational ownership shift, and the current system is locking out entrepreneurs and forcing legacy businesses into bad exits or closures,” Barchiesi said. “This proposal creates a more flexible, fiscally responsible, and market-aligned path forward.”
The white paper has been shared with members of the current administration, including leaders within regulatory agencies and related policy channels, as part of an ongoing effort to elevate practical, pro-growth solutions for Main Street businesses.
Key insights include:
The limitations of SBA-backed financing in succession planning.
A detailed structure for a refundable tax credit model.
Fiscal neutrality through IRS-aligned reporting (e.g., Form 1099-C offset).
Case study comparisons demonstrating seller impact.
Safeguards to ensure compliance, integrity, and fraud prevention.
With over 10 million small businesses expected to change hands in the next decade, BSTC offers a compelling and timely path forward.
Read the full white paper: https://www.polymath-partners.com/breaking-the-bank-how-innovative-tax-credits-can-end-sba-dependency-and-ignite-the-small-business-economy
About Polymath Partners
Polymath Partners helps entrepreneurs simplify complexity at the intersection of law, finance, and investment. The firm specializes in exit planning, strategic liquidity solutions, and integrated professional advisory for owner-operated businesses. Learn more at www.polymath-partners.com.
Contact
Polymath Partners
James Barchiesi
877-373-3090
www.polymath-partners.com
