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 more than 17% in the dollars going to franchises and more than 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 to 21 days.
Potential franchises interested in being listed on the Directory or looking for SBA financial assistance 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 tofranchise@sba.gov.
There are no fees for franchises that want to be added, and the SBA Franchise Directory is accessible to everyone.
About the U.S. Small Business Administration
The U.S. Small Business Administration empowers entrepreneurs and small business owners with the resources and support they need to start and grow their businesses. Backed by the federal government the SBA delivers its services to people through an extensive network of field offices and partnerships with public and private organizations.
VISIT: www.sba.gov
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