What Does the Discontinuation of the SBA Franchise Directory Mean for Potential Franchisees?

What Does the Discontinuation of the SBA Franchise Directory Mean for Potential Franchisees?

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The Small Business Administration (SBA) has announced the discontinuation of the SBA franchise directory, which provided a list of pre-approved franchises for financing purposes. The change will have a significant impact on franchise financing as lenders will now have to evaluate each franchise on a case-by-case basis, leading to potentially more time-consuming and expensive due diligence processes. The SBA franchise directory did not guarantee the success of a business or endorse the brands listed on it, but its presence provided lenders with a sense of security. Franchise owners who were on the SBA franchise directory found it easier to secure financing, but now lenders will need to rely on their own research and analysis to determine the investment potential of a franchise.
The discontinuation of the directory may result in more diversity in franchise financing options, as franchises not previously included on the SBA franchise directory might have easier access to SBA financing.

You can get a copy of the last SBA Franchise Directory here - https://drive.google.com/file/d/1LA1xo0KWmY2meQm4qB933OHska0fMKoX/view?usp=sharing

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