THE BUCKS STOP HERE: SBA LENDING TO FRANCHISING 2010-2012 For more information, please contact Daniel Son at (202) 822-1205 or
[email protected] EXECUTIVE SUMMARY SBA lending to franchising in 2012 increased over 60% over 2011, shrinking a credit access gap that has been the focus of industry efforts since the financial crisis. The report, released by the Coleman Report, the National Association of Development Companies (NADCO) and the International Franchise Association (IFA), showed that nearly 3,300 SBA loans went to franchises in 2012 for a total of over $3.8 billion, an increase of 34% in number of loans delivered and a 60% jump in dollar volume. This report is based on data released by the U.S. Small Business Administration and compiled by the Coleman Report. SBA financing for commercial real estate, equipment and leasehold improvements known as “504 loans” increased 67% in 2012 to $2.5 billion in total project finance. 504 loan volume nearly dou- bled between 2010 and 2012, while 7(a) volume ticked up nearly 12%. Loan Number and Volume – 504 Total Project Finance vs. 7(a) 504 504 Total Project Loan 7(a) # 7(a) Loan Volume Year # Loans Loan Volume $ Loans $ 2010 710 $1,360,044,000 2545 $1,301,096,087 2011 675 $1,540,309,000 1786 $1,027,489,280 2012 917 $2,463,076,199 2376 $1,456,886,051 TOTAL 2302 $5,363,429,199 6707 $3,785,471,418 Source: U.S. Small Business Administration Loan Number and Volume – 504 Total Project Finance vs.