What FRANdata Thinks

Well… we saw this coming. What we alerted you about in our last communication is about to happen. SBA will no longer be in the business of determining franchise affiliation. The deadline for the comment period is December 27th, 2022. Read the proposed rule here – https://www.federalregister.gov/documents/2022/10/26/2022-23167/affiliation-and-lending-criteria-for-the-sba-business-loan-programs “SBA proposes to remove paragraph (f)(5), affiliation based on franchise and […]

Effective August 1, 2022, for any complete application received by SBA, or any request for an SBA loan number made under the lender’s delegated authority, the following maximum fixed interest rates apply – For loans of $25,000 and less, maximum allowable fixed rate = Prime + 8% (800 basis points) For loans of more than $25,000 […]

We clearly are seeing the impact of inflation as it increases operating costs across supply and labor inputs in 2022. Is there relief coming from this profit-eroding upward pressure? Small-business owners began signaling inflation concerns in the summer of 2021 and now it’s become a major concern. The most recent NFIB Small Business Economic Trends […]

We’ve had spectacular job growth in the past 2 years, yet the U.S. labor force is still about 1.8 million workers lower than at the start of the pandemic. Initially, many said the slow employment recovery was because of the Cares Act providing a safety net for many lower-wage employees who otherwise would have returned […]

FRANdata projects that franchise unit growth will rise 2.2% in 2022. While that doesn’t seem like a big percentage (and it is lower than 2021), it still represents about 17,000 new units. There are many economic factors influencing the appeal of franchising in the early stages of an economic recovery. The mood among franchise development […]

 

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