Women in Business Tip: The State of SBA Franchise Loans and What It Means to Your Business - Forum.web.com
Follow Us:
Women in Business Tip: The State of SBA Franchise Loans and What It Means to Your Business
Business overworked

President Obama has finally nominated a replacement head of the Small Business Administration (SBA): Maria Contreras-Sweet, a businesswoman with a strong background in small business financing and government service. One issue Contreras-Sweet will be required to address is the alarming trend regarding the state of franchise loans.  According to a report by the Government Accountability Office, over a dozen years, more than 40 percent of buyers who purchased a single-unit franchise defaulted on the loans that the SBA guaranteed. The franchisees had difficulties meeting anticipated revenue estimates. With 20.5 percent of franchise owners being women, and franchise businesses projected to grow faster than the rest of the economy in 2014, the SBA (and therefore loan seekers) are sure to face more scrutiny in the year to come.

Want more news and tips to help your business? Connect with Web.com on Facebook or Twitter.

Rieva Lesonsky

Rieva Lesonsky

Rieva Lesonsky is CEO of GrowBiz Media, a media and custom content company focusing on small business and entrepreneurship. Email Rieva at rieva@smallbizdaily.com, follow her on Google+ and Twitter.com/Rieva, and visit her website, SmallBizDaily.com, to get the scoop on business trends and sign up for Rieva’s free TrendCast reports.
Rieva Lesonsky

Latest posts by Rieva Lesonsky (see all)

Rieva Lesonsky

Comments

Loading Facebook Comments ...
Join the Small Business Forum Community
The Small Business Forum is a place where small business owners can learn, ask questions, and share advice on how to succeed online
Skip to toolbar