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:
|Tropical Smoothie Cafe||39||13,230,800|
|Culver’s ButterBurgers& Froze||34||57,075,600|
The top hotels receiving SBA franchise loans are:
|Red Roof Inn||32||75,944,600|
|Baymont Inn & Suites||26||63,449,000|
|La Quinta Inn||25||85,841,100|
The top 10 franchise brands receiving significant SBA loans are:
|THE UPS STORE||77||19,604,800|
|THE GODDARD SCHOOL||62||144,653,000|
|Tropical Smoothie Cafe||60||22,011,900|
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.