On October 13, 2017 the SBA released a policy notice regarding their franchise SOP that takes effect January 1st 2018. FRANdata has long served as the franchising gateway to the SBA and we are pleased that they will be utilizing a similar structured approach to many of the franchise affiliation and business eligibility solutions in […]
We’ve been keeping you up to date regarding the pending changes at the SBA related to its lending processes for franchise businesses. This week, the SBA formally announced its new Standard Operating Procedure and provided access to the new standard addendum. The new SOP 50 10 5 (i), which will be effective January 1, 2017 describes […]
UPDATE Last week at the national SBA lender conference, SBA senior staff announced that the long-awaited changes to the franchise affiliation process are about to be issued through the release of a new SOP (Standard Operating Procedure) which will be effective January 1, 2017 at the earliest. It is not clear if the election results […]
When submitting loan packages to the SBA to obtain loan guarantee numbers, lenders need to determine if the loan meets affiliation standards. Franchise loans must meet both general borrower and franchise-specific affiliation tests. Most franchisors applied for and obtained franchise-specific eligibility approval. All a lender had to do was go to the SBA’s online pull-down […]
The SBA published a new rule change that will significantly alter the way affiliation is evaluated in franchise/license situations. One thing remains certain, details around how these changes are to be applied will not be known until the next version of the SBA’s Standard Operating Procedures is released– untill then, any changes will not be […]