SBA Registered Franchises
Is There an Advantage in Choosing a Franchise Registered with the SBA?
The Small Business Association (SBA) of the government has a list of franchises that qualify for SBA loans.
The fact that they qualify could be very beneficial – especially to those who may have trouble getting the needed money to buy into the franchise opportunity.
When a franchise is listed with the SBA, it means that the franchise has been given a pre-approval as a solid business. This means that the SBA recommends that particular business to lenders – and it will be easier to get a business loan for your business startup.
The fact that it is registered will also help you to know that it is a solid franchise model and that success has been seen in the past and is expected in new businesses. It is not, however, a guarantee that you will succeed.
You will still want to learn all you can about the company and investigate all the details. You should not assume anything – especially in a day when so many companies are facing serious downturns – along with the rest of the country and the world in general.
Two important factors about choosing any business franchise are:
- That you should consider whether or not you have a real interest in that type of product or service, and,
- If you have the ability to manage a business with that type of daily business dealings.
Just because it is SBA approved does not mean it will be easy or that everything will go smoothly for you.
Being able to get an SBA loan could definitely help you get your business started much sooner. Loans are harder to get these days and this could get it approved much faster. You will need a well-written business plan, which may even help cover up a possible lack of experience with starting a business – if that is the case.
The buyer, of course, will still have to meet the requirements for the loan, and you may need to get additional money from other sources.
Franchises that have been approved by the SBA cover all the various industries. This enables you to pick and choose from a large list of franchise businesses. Individual Web sites will usually only list a few that they have some affiliation with. In order to see the whole picture, you will have to visit a number of websites to discover the various company possibilities.