Check the S.O.P. Q&A

Q – How does the 504 Loan work for franchises?

A – For franchise businesses, the franchise agreement must be submited by the CDC to SBA for review and approval, prior to the funding of a 504 loan. There may be a simplified pre-approval of the franchise agreement if the franchise appears in the Official Franchise Registry. The Registry lists names of franchisors whose franchisees enjoy the benefits of a streamlined review process for SBA loan applications. If a “certificate of no-change” is submitted, loan applications for registered franchisors can be reviewed and processed very quickly. Through use of the Franchise Registry, small business franchisees get better service and quicker loans.

The Franchise Registry may be accessed at http://www.franchiseregistry.com