Best Franchises for SBA Lending

Best Franchises for SBA Lending

The bulk of SBA franchise lending is in the food services industry and hospitality but this a reflection on the franchise sector itself. Last year food services franchises received over 4,750 loans, representing almost 70% of all SBA franchise loans done in 2019. This doesn’t necessarily mean that food services franchises are the best performing one but mainly that food service is the most widely available franchise industry. However, we can use SBA lending data to see which of these are most popular among borrowers and even get an idea which ones have the lowest default rates.

The top 10 restaurant franchises receiving SBA loans are:

Restaurant Loans Amount
SUBWAY 104 30,276,000
BURGERIM 41 14,194,500
Tropical Smoothie Cafe 39 13,230,800
MARCO’S PIZZA 36 11,725,189
Culver’s ButterBurgers& Froze 34 57,075,600
Domino’s 32 15,771,700
FIREHOUSE SUBS 32 10,920,380
JERSEY MIKE’S 31 10,112,800
JIMMY JOHN’S 26 13,992,000
Little Caesars 19 15,339,700

The top hotels receiving SBA franchise loans are:

Hotel Name Loans Amount
Quality Inn 65 172,229,100
Days Inn 50 120,353,700
Super 8 43 90,821,900
Motel 6 41 103,416,000
Best Western 37 125,246,200
Red Roof Inn 32 75,944,600
Comfort Inn 28 73,115,500
Baymont Inn & Suites 26 63,449,000
La Quinta Inn 25 85,841,100
Econo Lodge 23 39,519,100

The top 10 franchise brands receiving significant SBA loans are:

Franchise Loans Amount
SUBWAY 118 36,730,200
ANYTIME FITNESS 102 52,432,300
THE UPS STORE 77 19,604,800
CLUB PILATES 66 18,626,100
QUALITY INN 65 172,229,100
F45 Training 64 15,788,000
THE GODDARD SCHOOL 62 144,653,000
Tropical Smoothie Cafe 60 22,011,900
SUPERCUTS 59 41,023,200
BURGERIM 56 21,428,800

Other emerging sectors for SBA franchising can be determined by analyzing historically successful industries for SBA lending. These industries include: dental offices, physician offices; optometrists, veterinary services and funeral homes.

Notable optometrist franchises that have received SBA loans include: My Eye Lab, Pearle Vision and Vision Group. A Veterinary Services franchise that has received SBA loans is Petstar Animal Care. Urgent care center franchises are capturing our attention, three that are approved to receive SBA franchise loans are: American Family Care, Your Kid’s Urgent and Paramount Urgent Care. Some of these franchise can be non-physician owned.

Call Now Book Now