SBA lending for franchise opportunities

8/3/2011

Many small business owners started their venture by opening a franchise branch. Franchises offer the security of an established brand and business practices, and can be easier to finance than startup and independent companies.

Elfrin Colon, a new Riverside, California, branch owner with Fresh Coat Painters, took advantage of the expanding franchise industry.

"I worked for an excellent company,” he noted. “But I wanted to own a company myself, put my efforts into something that could grow and be successful for me, something that I could pass to my sons when I retire where they could take care of it and keep it going."

Fresh Coat is a member of the U.S. Small Business Administration franchise registry. According to the SBA, registered companies keep the financing process "as easy and as cheap as possible." SBA lending is a popular way to obtain funding for a potential franchise opportunity, as it can help with the application process and may improve the chances of a loan approval.

SBA-approved franchises can be found on the organization's website. While non-approved businesses may not be able to provide the same efficient funding process as affiliated franchises, many are still viable business ventures.