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Log In / Register | Nov 28, 2014

Two Watchdogs Fault SBA for Loose Franchise Loans

Banco Popular
Banco Popular HQ. Photo by miller

The Government Accountability Office and the Small Business Administration's own Office of Inspector General chastised the SBA recently in two separate reports. The beef?

Matco Franchisees Allege SBA Loan Fraud

TD Bank, Washington D.C. Chinatown
TD Bank, Chinatown, D.C. by Matt Bisanz, wikipedia

Franchisees David Villano III and his father David Villano, Jr. are accusing Matco Tools, with accomplice TD Bank, of devising a secret scheme that allowed the franchisor to sell franchises through fraudulent small business loans.

Part 3: Advice on SBA Liar Loans

Franchisees often dream of owning their own business that blinds their due diligence effortsWASHINGTON — Loan experts say that franchise owners should check for themselves if their loan applications are filled with bogus numbers. Franchisees say easier said than done. SBA liar loans are stacked against them.

Part 2: Franchise Liar Loans Spread among Banks

The new Small Business Administration office in Washington D.C.
Small Business Administration building in Washington, D.C.

WASHINGTON — A major franchise lender, Banco Popular, has been rebuked by the Small Business Administration for participating in lending chicanery. 

SBA Rebukes Banco Popular for Liar Loans

A Banco Popular branch in Elmhusrt, New York
Elmhurst, New York branch of Banco Popular, photo/pws

WASHINGTON — One of America's major lenders of small business administration loans has been sharply rebuked by the Small Business Administration for participating in financial chicanery. The bank accepted unrealistic earnings projections for Huntington Learning franchises when they should have known better.