The overall message we received was that franchise lenders have robust volume and are looking for more deals. Below are four key questions and answers from the lender’s conference with over 450 of the most active lenders will help you understand how lenders are thinking. Q: How loose are SBA lender’s credit boxes? A: Deferments […]
Until May 11, 2023, the US Small Business Administration (SBA) facilitated franchise financing by authenticating brand eligibility through its directory. However, the SBA directory has been discontinued, and lenders now bear the burden of determining eligibility. This shift has led to banks reassessing their underwriting processes, causing delays and increased denials due to uncertainty. Lenders […]
SBA lenders have been faced with unprecedented changes in the way they finance SBA loans. These changes are unwelcome and, for the most part are causing significant uncertainty for both lenders and borrowers. The key takeaway for you as franchisors are to do whatever you can to help provide lenders certainty and speed because they have less […]
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 […]