SBA Lending to Franchises Jumps 60%


June 20, 2013

By Bob Coleman
Editor, Coleman Report

New York, NY – A new report released at the start of the International Franchise Expo in New York City shows that U.S. Small Business Administration (SBA) lending to franchising increased more than 60 percent over the previous year, shrinking a credit access gap that has been the focus of industry efforts since the financial crisis.

The report, co-authored by the Coleman Report, the National Association of Development Companies (NADCO) and the International Franchise Association (IFA), showed that nearly 3,300 SBA loans went to franchises in 2012 for a total of over $3.8 billion, an increase of 34 percent in number of loans delivered and a 60 percent jump in dollar volume.

SBA financing for commercial real estate, equipment and leasehold improvements known as “504 loans” increased even more – 67 percent in 2012 to $2.5 billion in total project finance. And 504 loan volume nearly doubled between 2010 and 2012, while 7(a) volume ticked up nearly 12 percent.

Download the Full Report “SBA Lending to Franchising 2010-2012”