Daily Herald: Financing for Franchises with the SBA 504 Program

A franchise location, while tied to a national or regional brand, is still a small business. It is up to the franchisee to find the necessary capital to open and operate. The U.S. Small Business Administration 504 loan program can be a great option for both new and seasoned franchisee owners. When it comes to the property purchase, buildout, and equipment needed to meet brand standards, entrepreneurs can use an SBA 504 loan to secure long-term, fixed rate financing with less money down.

According to the SBA’s public data, nearly 10% of the SBA 504 loans authorized since FY2010 were for franchises – including brands like Ace Hardware, Culver’s, Dunkin’ Donuts, Ford, Planet Fitness, Primrose Schools, and State Farm. Franchise opportunities for entrepreneurs span industry – from food, to fitness, to fun experiences.

To learn more about the latest SBA rule updates to franchise financing, check out this article by SomerCor SVP, Michael Piazza, published by the Daily Herald, and download the program flyer.