The Small Business Administration (SBA) is an independent agency of the government that helps Americans start, build and grow businesses. Although the SBA does not directly offer loans or financing, it does offer SBA-guaranteed loan programs, through lending institutions.
Small Business Administration (SBA)-approved franchises are an excellent choice for prospective franchise owners, who require financial assistance because it’s typically quicker and easier to obtain financing if the franchise is SBA-approved. Under the various SBA-guaranteed loan programs, the SBA guarantees the lender repayment of the loan in the event that the borrower defaults.
Aspiring franchisees that choose to purchase an SBA-approved franchise typically have an easier time securing financing because a loan that’s backed by the SBA reduces the lending banks risk, which expedites and streamlines the loan process.
SBA-approved franchises exist in an array of industry categories. From automotive and sports-related franchises to business-to-business and home services concepts, there are a variety of SBA-approved franchises to choose from.
To learn more about the SBA-approved franchise opportunities that are available and find the SBA-approved franchise that’s right for you, check out Franchise.com’s extensive directory of SBA-approved franchises.