UPDATE Last week at the national SBA lender conference, SBA senior staff announced that the long-awaited changes to the franchise affiliation process are about to be issued through the release of a new SOP (Standard Operating Procedure) which will be effective January 1, 2017 at the earliest. It is not clear if the election results […]
When submitting loan packages to the SBA to obtain loan guarantee numbers, lenders need to determine if the loan meets affiliation standards. Franchise loans must meet both general borrower and franchise-specific affiliation tests. Most franchisors applied for and obtained franchise-specific eligibility approval. All a lender had to do was go to the SBA’s online pull-down […]
The SBA published a new rule change that will significantly alter the way affiliation is evaluated in franchise/license situations. One thing remains certain, details around how these changes are to be applied will not be known until the next version of the SBA’s Standard Operating Procedures is released– untill then, any changes will not be […]
The banking industry is increasing its conventional business lending activity. Since the recession they have focused on lower risk businesses, which translated into larger businesses with good track records. More recently they have been expanding their focus to smaller businesses with less experience. Concurrently, we have seen the rapid expansion of alternative lenders, led by […]