The Best Franchises To Finance With An SBA Loan.
Updated: Aug 18
There are many advantages to funding a franchise with an SBA loan.
SBA loans allow for projection-based underwriting, which means prospective franchise business owners can obtain capital for initial businesses based on profitability estimates. SBA loans also include generous term lengths, such as a 10-year term on non-real estate loans.
How long does it take for an SBA loan to fund?
Two to three months.
With typical lenders, the process of receiving an SBA loan takes up to two to three months. However, some lenders will offer funding in as little as 30 days, although these efficient lenders are quite rare especially in these times of COVID and PPP.
As an aspiring franchisee, you may be considering an SBA franchise loan to get your business off the ground without having to tap into a lot of your own personal cash.
And why wouldn’t you? Buying and operating a franchise offers the best of both worlds between bootstrapped entrepreneurship and traditional employment. As a franchise owner, you’ll step right into the franchisor’s unparalleled resources, stability, and proven business model, but you’ll also enjoy the autonomy of small business ownership.
And an SBA franchise loan is a great way to get you there.
SBA loans are among the most coveted loan products on the market for their high capital amounts (into the millions), low interest rates (single digits), and long terms (decades, potentially).
So, which franchises are best for an SBA Loan?
The Franchise Insiders has helped hundreds of people become franchise owners over the years. Many of those owners funded their franchise with an SBA Loan. We work with the best of the best when it comes to funding and keep in constant communication with these lenders so any franchise recommendation we make to our clients is typically approved by the SBA.
Below is a list of safe industries that are being funded at record low interest rates by SBA Loans TODAY in spite of COVID.
Crime Scene Clean
Maid Services/Home Cleaning
Electrical Service and Repair
Home exterior services
Business to Business
Lawn and Garden
Kitchen Hood Repair
Senior In Home Care/Health Care
With record unemployment and many jobs not coming back, the above industries funded by a low interest SBA Loan, provides a very safe strategy for those who wish to maintain their lifestyle and grow a business asset that can support their family for decades to come. Unlike a job which is much more volatile, a franchise is very sustainable and can provide the kind of dependability so many people are seeking.
But don't wait to invest!
The Franchise Insiders are predicting a record run on franchises through the end of 2021. So there soon will be MUCH less inventory for preferred franchise brands and territories.
The time to get that fabled slice of the American pie is now - with a franchise!