SBA Franchise Registry A Valuable Resource for Franchisees, Franchisors and Lenders

May 25, 2011, 2:02 PM

The United States Small Business Administration (SBA), in conjunction with FRANdata, offers the Franchise Registry online lending portal. Franchise systems can pre-qualify for inclusion in the Franchise Registry, which facilitates and streamlines SBA lenders making loans to potential franchisees of those pre-qualified systems. The Franchise Registry has recently announced an expansion of its online lending portal to provide lenders with additional credit risk information tools to better assess the risk of lending to a franchisee within a particular franchise system. In addition, the SBA provides information on loan failure rates within specific franchise systems, which information can prove invaluable to prospective franchisees considering signing a franchise agreement with a particular franchise system. Thus, the Franchise Registryand related information compiled by the SBA, e.g., can be a valuable source of information to franchisees, franchisors and lenders. --Stephen E. Story