SBA 504 Franchise Financing

SBA recently provided NADCO with date on SBA 504 franchise activity from 1986 through Sept. 30, 2010. 842 different franchises received 9,685 loans during this period; however when you segregate the top 50 franchises out of the 842 total, these top franchises received 5,757 loans or 59.5% of the loan volume while representing only 6% of the total franchise list. The remaining 792 franchises received 3,908 loans of 40.5% of the number of loans provided.

Interestingly, 318 (37.7%) of the franchises listed received only one loan through the 504 loan program, 134 franchises received only 2 loans (15.9%) and those franchises receiving between 3-39 loans represented 40.4% of the franchises listed of 340.