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Log In / Register | Apr 17, 2014

Franchise Lenders to Expect SBA Tightening

Tightening of credit

An advisor and publisher to America's small business lenders says a recent Government Accounting Office report highlights many franchise lending failures.

GAO Reveals SBA’s $1.5B Franchise Loan Headache!

Huntington Learning Centers

2011 OIG audit of Huntington's SBA loans started series of audits. photo/bmm

Audit after government audit is showing major problems with SBA-backed 7(a) franchise loans.These uncollectable bad loans to franchise owners are $1.5 billion, costing U.S. taxpayers.

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.

SBA Liar Loans Are Not Surprising

Regarding the current exposé by Blue MauMau on bogus franchise loans by bankers, loan brokers and franchisees in order to have Small Business Administration-guaranteed loans for otherwise bad investments...

Liar Loans Pt 5: Different Books for Different Folks

See no evil, hear no evil, speak no evil
Representing the franchise lending process? photo/rose robinson

LEXINGTON, Ky. — Franchisees of Huntington Learning Center, The Coffee Beanery and more say that the system was stacked against them. What irks them is that their franchisors had access to the real numbers while they struggled to get a scrap of financial information, any information, from a single store.

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.