Explore Your Franchise Funding Options

• 7(a) Loan Program: Considered the gold standard for franchise financing, the SBA 7(a) loan offers up to $5 million with terms of up to 10 years for working capital and up to 25 years for real estate. Enjoy competitive interest rates typically falling within the range of prime rate plus 2.25% to 4.75%. The SBA guarantees up to 85% of the loan amount, reducing risk for lenders and facilitating borrower qualification.
• CDC/504 Loan Program: Ideal for major fixed asset purchases, this program covers buying land or buildings, making property improvements, or acquiring long-term machinery. The SBA provides 40% of the total project costs, a participating lender covers up to 50%, and the borrower contributes the remaining 10%. Interest rates are linked to increments above the current market rate for 5-year and 10-year U.S. Treasury issues.
• SBA Express: With a rapid loan approval turnaround, sometimes within 36 hours, the SBA Express program offers speedy access to funds. However, the SBA guarantee is reduced to 50%, potentially affecting the interest rate and terms offered by the lender.

Access conventional loans tailored to your franchise needs, though they may require a stronger credit profile and a larger down payment.

Tap into in-house financing or third-party partnerships facilitated by franchisors to fund franchise fees, equipment, and startup costs.

Leverage online platforms for quick application processes, though they may involve higher interest rates compared to traditional banks.

Equipment loans are secured by the equipment itself, serving as collateral. Typically, loan amounts can cover up to 100% of the equipment value, with terms aligning with the expected lifespan of the equipment. Interest rates fluctuate depending on creditworthiness and the specific terms of the loan.

These loans are utilized for acquiring or refurbishing commercial real estate. They require a down payment ranging from approximately 20-30% of the purchase value and typically feature terms spanning from 5 to 20 years, with amortization periods extending up to 25 years. Interest rates can be either fixed or variable.

Explore tax-deferred investment options without incurring debt or future loan payments.8. Home Equity Lines of Credit (HELOC): Utilize your home equity as collateral to secure lower interest rates for financing.

Microloans are commonly provided by non-profit organizations and community-based financial institutions. While these loans can reach up to $50,000 in value, they frequently come in smaller amounts. Although they may carry higher interest rates compared to SBA loans, microloans are usually more accessible to individuals with limited credit history.

Explore innovative options like crowdfunding, peer-to-peer lending, and merchant cash advances to meet your funding requirements.

Personal loans may serve as a financing solution for business needs, given that the loan size remains modest. These loans are unsecured and rely on the borrower's creditworthiness, often entailing higher interest rates compared to alternative business loan options.