Special CAFA Meeting: What’s New With the SBA & Franchise Lending?
Speaker: Edith Wiseman CFE, President, FRANdata
11:45 AM – 2:15 PM EDT Serendipity Labs, 4500 East West Hwy., Bethesda, MD 20814
At the National SBA lender conference, SBA senior staff announced that the long-awaited changes to the franchise affiliation process are about to be issued through the release of a new SOP (Standard Operating Procedure) which will be effective January 1, 2017, at the earliest.
SBA indicated the SOP will include a one-page addendum that addresses all franchise affiliation requirements. The existing rules are in effect until then.
But, these changes will lead to:
1. Franchisors having to negotiate with each lender on these issues,
Putting the burden of SBA affiliation and credit-related SOP issues on franchisors and lenders to solve loan by loan, which is the way it existed before 1998.
2. Fortunately, senior SBA staff indicated that the SOP is a flexible document. The implication was that they are exploring how far they can push the envelope with the goal of streamlining and standardization. They realize that there could be substantial negative feedback and therefore say during the next 60 days are open to understand the issues that arise as a result of this SOP change.
About the Conference
April 10-12, 2017 – Austin, Texas Hyatt Regency Austin
Join Us: http://malcconference.com/
Edith Wiseman, President
Franchise Lending – Measuring Franchise Performance
Tuesday, April 11, 2017
2:00 pm – 3:15 pm