The Small Business Administration (SBA) has recently announced significant changes to how it deals with franchise lending, signaling its departure from the messiness of franchise oversight and eligibility. These changes aim to simplify and expand the program, aligning it with the success of the Paycheck Protection Program (PPP) that provided loans to small businesses during […]
Well… we saw this coming for franchise lending. What we alerted you about in our last communication is about to happen. SBA will no longer be in the business of determining franchise affiliation. The deadline for the comment period is December 27th, 2022. Read the proposed rule here – https://www.federalregister.gov/documents/2022/10/26/2022-23167/affiliation-and-lending-criteria-for-the-sba-business-loan-programs “SBA proposes to remove paragraph (f)(5), affiliation […]
Effective August 1, 2022, for any complete application received by SBA, or any request for an SBA loan number made under the lender’s delegated authority, the following maximum fixed interest rates apply – For loans of $25,000 and less, maximum allowable fixed rate = Prime + 8% (800 basis points) For loans of more than $25,000 […]
The National Association of Government Guaranteed Lenders (NAGGL) just had its Spring Conference and FRANdata was there gathering insight on the latest in franchise financing. What’s the buzz on the upcoming New SBA proposed rule-making coming out in the summer? SBA is taking lessons learned from the pandemic, trying not to lose the momentum it […]
At the latest Multi-Unit Franchising Conference, Darrell Johnson addressed the current state of franchise financing. Based on FRANdata analysis. Franchising is growing. The recovery after the pandemic has proven the resiliency of the franchise model and, in turn, increased lender trust in the franchising model. According to the latest from FRANdata CEO Darrell Johnson, demand […]