Based on analysis of 192 franchises in FranchiseStack's database, SBA loans are a critical funding source for diverse investment levels, ranging from mid-tier retail like The UPS Store ($178K-$403K) to high-capital restaurant brands such as Burger King ($580K-$4,731K) and McDonald's ($1,315K-$2,307K). The SBA's streamlined directory process ensures that brands meeting specific FTC and SBA requirements can offer faster financing paths to prospective franchisees.
The SBA Franchise Directory is a list of franchise brands that have been reviewed and approved by the SBA, simplifying the loan application process by confirming the brand's eligibility for government-backed financing.
Yes, SBA loans can fund low-cost franchises like Jan-Pro ($4K-$56K) or H&R Block ($32K-$150K), though for amounts under $50,000, an SBA Microloan may be a more suitable product than a standard 7(a) loan.
SBA loan rates are generally tied to the Prime Rate plus a spread of 2.25% to 4.75%, depending on the loan amount, term length, and the borrower's credit profile.
Most SBA lenders look for a personal credit score of 680 or higher, along with a solid business plan and relevant management experience.
The standard SBA 7(a) loan process typically takes between 60 to 90 days from application to funding, though SBA Express loans can provide a response within 36 hours for smaller amounts.
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