• 504 Loans Are a Good Choice for Franchise Financing

    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.

  • The SBA Streamlines Its Process for Franchise Funding

    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.