The U.S. Small Business Administration created the SBA Franchise Directory earlier this year which has streamlined the process for entrepreneurs looking to access capital.
“It’s a one stop shop to check the growing list of eligible brands for SBA financing. Since its establishment, the Directory and new procedures have received extremely positive feedback from the stakeholders participating in the process,” SBA Associate Administrator William Manger said.
The SBA Franchise Directory is updated every other week to keep it current and has added 566 new brands since the new policy was announced, bringing the total eligible brands to 2,566.
Manger continued, “This is extremely important as the SBA has seen an increase in the number of entrepreneurs opening franchises, especially among women.” The SBA 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.
The eligibility status of the franchise brands on this list are checked and cleared by the SBA cutting the finance processing time and making it more efficient. 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.
Potential franchises interested in being listed on the Directory should email copies of their Franchise Disclosure Document, the Franchise Agreement (or license or other type of agreement), and any other documents that the franchisor will require the franchisee to execute to email@example.com
There are no fees for franchises that want to be added to the Directory and it is accessible to everyone visiting SBA’s website (www.sba.gov).
If you are a franchisor looking for SBA financial assistance and would like to be included in the SBA Directory, visit: https://www.sba.gov/document/support-sba-franchise-directory.
For reprint and licensing requests for this article, CLICK HERE.