Annual credit reports Houston

Reilly, CIT has recently "made some changes" to its underwriting criteria for franchising in order to reduce its risk exposure. The standard SBA loan for franchisees is known as the 7(a), which is issued by a bank or other qualified lender, and partly guaranteed against default by the government.

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

Most of that money is earmarked for franchise entry fees, improvements or working capital. free canada credit report Even so, the program is feeling a bit of the crunch. Hammersley says about 300 of some 4,000 bank participants around the country have reduced their SBA annual credit reports Houston 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 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 be annual credit reports Houston in a bit of a bind," says Mr. credit report "I get a lot of calls from individuals annual credit reports Houston with SBA loans who want 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.

Burke, senior vice president of the bank's SBA lending unit.

Nor, he adds, has 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 lending to service- and restaurant-industry franchisees -- both annual credit reports Houston first-timers and established multiple-unit operators. Interest rates are market-driven and terms depend on the specific deal, Mr. Another government lending program involves the Department of Veterans Affairs. The program, called Patriot Express because of its relatively fast approval time, makes loans up to $500,000 to active-duty military preparing to transition to civilian life, as well as to spouses and survivors of veterans. free business credit report 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 franchise annual credit reports Houston fee for a store is waived for disabled veterans, and these franchisees get a 10% discount on equipment, plus about $18,000 to help open the business.