2016 is starting off on the right foot for potential franchise business owners, as you’ll see from the statement below.
From Maria Contreras-Sweet, Administrator of the U.S. Small Business Administration:
“I am proud that Fiscal Year 2015 was one of the most successful years in SBA’s history. It was a record year in small business lending, a record year in investment, and a record year in contracting. SBA reached historic levels for small business lending under our flagship 7(a) program. We reached $23.5 billion dollars in gross approvals, a 22 percent increase in the number of loan approvals, and a 23 percent increase in the dollar value of those loans, compared to FY 2014.” More
Small Business Administration Loan Approvals Up 22%. Things Are Getting Better
A statement like that from the SBA is proof that things have finally started to turn around for those looking to start businesses-especially franchise businesses.
Most of the people who come to me for help don’t have the financial means to simply write a check for $250,000 to open the franchise of their dreams. Obtaining a small business loan is crucial for those wanting to take their shot at small business ownership.
It’s great to hear that the SBA’s loan approval rate is up so much.
(Disclosure: I write a monthly article on franchising for SBA.gov)
10-15 years ago it was much easier to obtain a small business loan for a franchise business.
A gentle tip from The Franchise King®:
Do not buy a franchise until you know EXACTLY how to do thorough research.
Learn how here
Would-be franchise business owners could simply march into their local bank and apply for a home equity loan…or a home equity line of credit. Approval would take a week or two, and like magic, a franchise could be purchased. With interest rates at the time hovering around 4%, using one’s home equity was a no-brainer. Lots of franchises were sold. Lots of new franchise businesses were opened. Lots of downsized employees were able to wave goodbye to corporate America and start working for themselves.
Time For You To Do It?
Is it your time to do it?
Are you going to make 2016 the year?
The year you took more control of your life?
If so, and you feel that owning a franchise can help you get where you want to go, read (and profit from) my top tips for buying a franchise in 2016.