Women looking to buy a franchise can leverage government-sponsored programs to provide for start-up funding. While these programs can provide some assistance to get a franchise up and running, many female entrepreneurs find they need additional financing options to meet their start-up needs.
The most recent analysis by the Federal Reserve of small business credit markets shows signs of slowing revenue and credit gaps, especially among firms with annual revenue of $1 million or less. With the credit market tight, especially among larger lenders, businesses are looking at other options to fuel start-up and expansion work.
Identifying the right way to finance your small business is an important decision for any entrepreneur. Unless you are sitting on a pile of cash, you will need to go out and secure funds for start-up costs and to keep the business, not to mention your personal life, going until revenue begins to appear.
How will changes to the SBA's Standard Operating Procedures affect your business in 2018?
Tackling Another Common Question: Can’t I just go to a bank?
In the March 2017 issue of Franchising World Magazine, Dallas Kerley, Benetrends Financial Chief Development Officer authored an article titled “Issues Impacting Small Business Funding in 2017”.
Effective immediately, the new SBA Administrator, Linda E. McMahon, has rescinded the November 1, 2016 notice to rebrand its two core business loan programs. The names of the loans have returned to what they were previously: the "7(a) Loan Program" and the "504 Loan Program." Click here to read the official notice
Click here to listen to the recent Benetrends podcast that addresses recent changes in the SBA world. The podcast covers the recent SOP changes and their effect on franchisors, borrowers, franchise consultants and business brokers
As you begin your journey to own a small business and finally realize your dreams of entrepreneurship, the effort to secure funding for your startup may seem daunting. While the thought of finally getting your business up and running is exciting, the time and energy that goes into knowing how to fund your business is enough to leave the most passionate entrepreneur a little shaky.
But, your excitement doesn’t need to wane during this process.
A big sigh of relief is in order for entrepreneurs now that the SBA Shutdown Crisis of 2015 is over and lending can resume for the SBA’s flagship 7(a) program. As of July 27, 2015, Congress has officially raised the lending cap for the program by $4.75 Billion, to $23.5 Billion. This follows a suspension on July 22 when the SBA announced it reached its 2015 Loan Guarantee Program limit of $18.75 billion two months short of the governments fiscal year end (September 30).