Soaring Franchisee SBA Loan Defaults
A Wall Street Journal article by Richard Gibson summarizes the top five franchise SBA guaranteed franchisee loan failures over the 2001 - 2008 period and the top eleven for 2008. Quiznos leads the pack in 2008.
"From ice-cream parlors to tanning salons, franchisees' defaults on loans guaranteed by the U.S. Small Business Administration are piling up in amounts unseen in years. A list of loans at 500 franchises shows the number of defaults by franchisees increased 52% in the fiscal year ended Sept. 30, 2008, from fiscal 2007. Loan losses totaled $93.3 million, a 167% jump from $35 million just 12 months earlier.
The figures, a stark barometer of the downturn's severity and scope, could give pause to banks that have loan money about where to lend next."
--
Related Reading:
- 2008's SBA Loan Failure Rates by Franchise Brand (Blue MauMau)
- Small Buinesses Stifled by Drop in SBA Loans
- Franchise topic:
