Is the SBA Looking at Franchise Start-Up Loans Differently?

Tweet Is the SBA Looking at Franchise Start-Up Loans Differently?Yes, franchise start-up loans have been more difficult. Lenders are looking more closely at the debt to income ratios to be 1.25 or higher. SBA lenders are reviewing the history and default rate of the franchise system. Lender’s want to know how well the industry is … Continue reading “Is the SBA Looking at Franchise Start-Up Loans Differently?”

Since the Credit Debacle, Should Prospective Franchise Owners Plan On Coming Up With Bigger Down Payments?

Tweet Yes, lender are requiring a higher down payments (usually 30% on a start up business). Not only are lender requiring more down payments but more cash reserve money (3+ months personal expenses after down payment), higher credit scores (start at 660 but it is more positive if 700+), experience and collateral (at least 50% … Continue reading “Since the Credit Debacle, Should Prospective Franchise Owners Plan On Coming Up With Bigger Down Payments?”

SBA Franchise Loans – Incentives Scheduled to Expire

Tweet Since the economy went into recession, Congress passed several temporary changes to SBA loan programs. The changes benefit SBA franchise loans in several ways. First, the large upfront fees are temporarily subsidized. These fees are typically in the 2.75% range of the guaranteed portion of the loan. This results in a huge savings for … Continue reading “SBA Franchise Loans – Incentives Scheduled to Expire”