The franchise industry makes a huge contribution to the United States economy each year. NADCO and the SBA understand the significance of the franchise industry as it relates to job creation in the private sector, and in some cases, offer special REAL incentives for franchisees who are looking to own his or her commercial property.
REAL Loan for Franchise Growth
Perhaps the best overview of 504 franchise lending is presented in the following download (right click and select "download linked file"):
Franchise Lending Report
Click the report cover below to download the most recent version of NADCO's Franchise Lending Report.
Click here to download the SBA 504 Franchise Financing Report for 1986 to 2010.
The 504 Franchise Lending Initiative | Announcement
|The International Franchise Association (IFA) and the National Association of Development Companies (NADCO) announced its joint franchise initiative leveraging SBA loans for franchise real estate, equipment, and remodels at the IFA Convention Financial Summit February 18, 2013 in Las Vegas.|
The funding initiative features 10 percent down, long-term fixed-rate financing and will support single- and multi-unit new development as well as transfers, conversions, refranchising, remodeling, and refinancing.
"This new initiative will increase the use of the SBA’s 504 lending program, finance new franchise establishments and create jobs in the franchising industry in 2013 and beyond,” said IFA President & CEO Steve Caldeira. "The SBA and its partner lending institutions are a critical vehicle to finance the growth plans of franchisors and franchisees that continue to grow at rates that outpace growth of other industries.”"While franchisees have long used SBA-guaranteed asset finance programs, franchisors can now deploy these asset finance programs for system-wide, game- changing growth,” said NADCO President & CEO Beth Solomon.
"The 504 industry, through its 270 Certified Development Companies (CDCs) in all 50 states, is mobilizing to support franchise growth and create the jobs America needs.
”Thousands of franchisees have already benefitted from 504 asset financing. Mary and Robert Perez, owners of six Wendy’s franchises in Arizona employing nearly 120 people, recently used SBA 504 loans through CDC Small Business Finance, a San Diego-based CDC, to unlock capital that enabled them to hire three more managers and increase staffing hours for existing team members. In 2008, the Perez’s received the Wendy’s Award for outstanding operator in the Western Region.
Through the initiative, franchises will be able to access long-term, fixed-rate financing with as little as 10 percent down to for owner-occupied purchase, renovation, leasehold improvements, new construction, machinery, equipment, and closing costs.