Change of ownership is the biggest slice of SBA lending. SBA just made it harder to finance a change of ownership. That’s the tension at the heart of SOP 50 10 8.1, SBA’s newly released rulebook, and it’s going to shape how your franchisees get funded starting this fall. The New SBA SOP […]
What are lenders learning after losing $200 million a quarter? SBA lenders have been working through unprecedented portfolio losses and asking real questions like “Should I be underwriting to a 15% decline?” That’s not a theoretical question – similar sentiments came up time and again from active franchise lenders. Simply said, franchisors and franchisees […]
The Small Business Administration has formally announced that the FICO Small Business Scoring Service (SBSS) Score will no longer be used for 7(a) Small Loans beginning March 1, 2026. This policy change has significant SBA SBSS sunset franchise financing implications for franchisors as lenders shift toward new underwriting requirements. For franchisors, the end of SBSS […]
How Leading Franchise Lenders Use FUND Scores to Improve Franchise Loan Performance In a lending environment defined by tightening credit standards and rising risk awareness, franchise lenders are increasingly turning to data-driven franchise lending insights to improve decision quality and portfolio outcomes. FRANdata’s latest analysis of more than 18,000 SBA 7(a) loans shows how measurable […]
Franchise financing outcomes vary widely across systems, but new evidence shows that brand-level creditworthiness plays a measurable role. FRANdata analyzed more than 18,000 SBA 7(a) loans issued to franchisees from 2010 to the present—representing roughly $8 billion in total financing—to quantify how FUND Scores relate to loan performance. The findings confirm a statistically significant relationship […]