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Darin Manis Darin Manis

Top 10 Banks for Franchise Loans Over the Last 10 Years

Over the past decade, an average of 33% of the top 10 SBA franchise lenders change each year, based on total funded loan amounts. This means that, on average, one-third of the top lenders from one year are replaced by new entrants the next. Here are specific examples over the last few years:

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Darin Manis Darin Manis

Top Franchise Brands for SBA Startup Loans in 2024

Franchise startups can be perceived as more preferable and less risky to some lenders, especially those specializing in franchise lending. For non-franchise small business startup SBA loans and business loans in general, the borrower needs to have a background and some expertise in the kind of business they are wanting to startup. This requirement is met with a franchise loan since you are buying this experience and blue print.

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Darin Manis Darin Manis

SBA Franchise Lending in 2024

457 banks funded 3,680 franchise loans for $2.7 billion to franchise borrowers from 1,115 different brands in 222 industries. The average loan amount funded was $722,652. SBA franchisee loans were funded in all 50 states to borrowers from 1,633 cities. 81% of SBA franchisee loans were funded for a project state which is different than the bank’s state. The average bank spread over the prime rate was 2.37%. Franchise business loans accounted for 13% of all funded SBA 7(a) dollars.

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