SBA Franchise Directory Simplifies Processes to Help Entrepreneurs Access Capital
The Small Business Administration (SBA) created the SBA Franchise Directory earlier this year to streamline the process for entrepreneurs looking to access capital. The directory only includes business models that the SBA determines are eligible under its affiliation rules and other eligibility criteria.
If an applicant’s brand meets the FTC definition of a franchise, it must be on the directory in order to obtain SBA 504 financing. Lenders can now rely on the directory and will no longer need to review franchise or other brand documentation for affiliation or eligibility.
The eligibility status of the franchise brands on the directory are checked and cleared by the SBA, cutting the finance processing time and making it more efficient. The SBA Franchise Directory is updated every other week and currently lists over 3,000 eligible brands.
Once franchisors have filed the proper paperwork, lenders can process loans without further review of the franchise documents. The vast majority of new brands are reviewed within 14-21 days.
To access the directory, go here: www.sba.gov/document/support–sba-franchise-directory.
According to the SBA, it has seen an increase in the number of entrepreneurs opening franchises, especially among women. The agency said it has seen a year-over-year increase of over 17% in the dollars going to franchises and an over 18% in the dollars going to women-owned franchises.
For 2018, it is forecasted there will be almost 760,000 franchise establishments in the United States. Florida’s 2018 franchise forecasts include a 4.7% increase in franchise employment to 543,800 jobs; a 7.5% increase in output of franchise businesses in nominal dollars to $48.9 billion; a 2.9% increase in the number of franchised establishments to 48,900; and an 8.2% increase in the GDP of the franchise sector to $20 billion.
For more information about SBA 504 loans in Florida, South Alabama or South Georgia, contact a Florida First Capital Loan Officer or email us at firstname.lastname@example.org. Phone: 850.681.3601 or toll-free at 800.504.LOAN.