Almost everyone who buys a franchise and opens a franchise business will secure a loan of some type to fund their business. The most common types of loans are SBA loans. The SBA is a federally funded agency that offers government backed guarantees for those loans. There are three points of relevance for prospective new small business owners that are looking to get an SBA loan.
- Any new SBA loan that is approved between now and September 30, 2021, will receive six months free of loan payments made by the SBA. This is a huge benefit to a new startup where cash flow is crucial during the beginning months of operation.
- New SBA loans will have the SBA Guarantee Fee completely waived.
- The SBA will increase their guarantee on new 7(a) loans from 75% to 90% between now and October 30, 2021. It is important to note that every SBA lender still has their own discretionary rules when it comes to their credit box. However, the mentioned provisions will increase their ability to lend on new businesses in 2021.
Don’t let funding be an “excuse.” Contact me at 925-642-9976 to put you in touch with a funding specialist.