Annual credit report Louisville

"It's what the SBA was created for, to provide access to annual credit report Louisville capital for small businesses who can't annual credit report Louisville get it through conventional means," says Christine annual credit report Louisville Reilly, head of small-business lending at CIT Group annual credit report Louisville Inc., a New York-based finance company. Reilly, CIT has recently "made some changes" to its underwriting criteria for franchising in order annual credit report Louisville to reduce its risk exposure. The standard SBA loan for franchisees is known as the annual credit report Louisville 7(a), which is issued by a bank or other qualified lender, and partly guaranteed against default by the government. Because of that backing, such loans are seen as annual credit report Louisville relatively low-risk.

SBA loans include those for short-term working capital and equipment, which often annual credit report Louisville have a five- to six-year maturity; and real-estate loans, which can run for 20 years annual credit report Louisville or more. Despite the current tight-money situation, "we expect to have adequate funding to meet demand for fiscal '09," says James Hammersley, director of the agency's loan-programs division. About 10% of all SBA loans go to franchisees, with the size running between $250,000 and $500,000, although the maximum annual credit report Louisville is $2 million. Most of that money is earmarked for franchise entry fees, improvements or working capital.

Even so, the program is feeling a bit of the crunch. free credit report request

Hammersley says about 300 of some 4,000 annual credit report Louisville bank participants around the country have reduced their SBA lending activity. He also suspects that many bankers still in it are asking for more collateral.

Borrowers must be creditworthy, typically contribute some equity, and are expected to repay the SBA loan out of the franchise's cash flow. "You need to have your own blood, sweat and tears in the business," Mr. While the actual annual credit report Louisville rate is negotiated between the bank and the borrower, it's subject to SBA maximums, which are tied to the prime rate. While a low rate may be attractive initially, if borrowers can't generate enough business to cover their payments, "they could annual credit report Louisville be in a bit of a bind," says Mr. "I get a lot of calls from individuals with SBA loans who want annual credit report Louisville to refinance them," he says.

"They might have gotten in at 8%, and now the rate has gone up to the high 9s or 10s." For at least one big SBA lending participant, Wells Fargo Bank, a unit of Wells Fargo & Co., it's still business as usual. check credit report for free Burke, annual credit report Louisville senior vice president of the bank's annual credit report Louisville SBA lending unit. Nor, he adds, has annual credit report Louisville the bank changed its credit criteria. Last year, Wells Fargo closed 209 SBA loans to franchisees and "year over year we're up," he says. Wells Fargo concentrates on annual credit report Louisville lending to service- and restaurant-industry franchisees -- both first-timers and established multiple-unit operators.

Interest rates are market-driven and terms depend on the specific deal, Mr. Another government lending program annual credit report Louisville involves the Department of Veterans Affairs. The program, called Patriot Express because of its relatively annual credit report Louisville fast approval time, makes loans up to $500,000 to active-duty military preparing to annual credit report Louisville transition to civilian life, as well as annual credit report Louisville to spouses and survivors of veterans. In a spinoff of that, at least one franchiser is offering financial assistance to disabled veterans who want to start a franchise.

At Little Caesars Enterprises Inc., the initial $20,000 annual credit report Louisville franchise fee for a store is waived annual credit report Louisville for disabled veterans, and these franchisees get annual credit report Louisville a 10% discount on equipment, plus about $18,000 to help open the business. "annual credit report Louisville Their first food order -- dough, sauce and cheese -- we give them for free," annual credit report Louisville says David Scrivano, president of the pizza franchiser. credit reporting laws A few other franchisers offer internal financing to the general population. One is Dwyer Group, which franchises a half-dozen home-and-auto service concepts including Mr. The Waco, Texas, company will finance up to 70% of the typical initial $42,000 fee. The interest rate -- currently at 9% to 12% -- is based on the franchisee's credit score.

Rates "may seem high," says Robert Tunmire, Dwyer's executive vice president, "but they're not putting their homes up as collateral or anything like that." Dwyer also gives a 10% discount to franchisees who pay cash. Some would-be franchisees are foregoing loans and tapping their 401(k) retirement funds for financing. It works this way: The annual credit report Louisville franchisee sets up a C corporation that will own and operate his or her business.