The 504 Loan Program is a good financing choice for franchises. Since the SBA has streamlined the approval process for franchisees, it is easier than ever to get the financing needed, especially when entrepreneurs open multiple franchises. The down payment needed for a commercial bank loan is often too high, usually 20% of the project cost, for most borrowers to accommodate. The capital outlay for franchisees typically includes franchise fees, royalties, marketing fees, and sometimes required products.
Effective January 1, 2017, the SBA has changed the process for how SBA lenders finance franchise borrowers. The SBA says the purpose of the revisions is to "streamline the procedures" for determining whether a business qualifies as a small business when applying for an SBA loan. This change speeds up the loan process while minimizing the resources required by the SBA.
By the end of every January, mailboxes are filled with envelopes stamped "important tax documents enclosed." These notices mark the official start of tax season. This year, personal income taxes for 2016 are due on Tuesday, April 18th. While that date may seem far off, it is never too early to start preparing.