Credit checking St. Louis

Despite the current tight-money situation, "we expect to have adequate funding to meet demand for fiscal '09," says James Hammersley, director of the agency's loan-programs division.

About 10% of all SBA loans go to franchisees, with the size running between $250,000 and $500,000, although the maximum is $2 million. Most of that money is earmarked for franchise entry fees, improvements or working capital. Even so, the program is feeling a bit of the crunch. Hammersley says about 300 of some 4,000 bank credit checking St. Louis participants around the country have reduced their SBA lending activity. He also suspects that many bankers still in it are asking for more collateral.

Borrowers must be creditworthy, typically contribute some equity, and are expected to repay the SBA loan out of the franchise's cash flow. "You need to have your own blood, sweat and tears in the business," Mr. While the actual rate is negotiated between credit checking St. Louis the bank and the borrower, it's subject to SBA maximums, which are tied to the prime rate. While a low rate may be attractive initially, if borrowers can't generate credit checking St. Louis enough business to cover their payments, "they could be in a bit of a bind," says Mr. free government credit reports "I get a lot of calls from individuals with SBA loans who want to refinance them," he says. "They might have gotten in at 8%, and now the rate has gone up to credit checking St. Louis the high 9s or 10s." For at least one big SBA lending participant, Wells Fargo Bank, a unit of Wells Fargo & Co., it's still business as usual. Burke, senior vice president of the bank's SBA lending unit. Nor, he adds, has the bank changed its credit criteria. Last year, Wells Fargo closed 209 SBA loans to franchisees and "year over year we're up," he says. Wells Fargo concentrates on lending to service- and restaurant-industry franchisees -- both credit checking St. Louis first-timers and established multiple-unit operators.

Interest credit checking St. Louis rates are market-driven and terms depend credit checking St. credit report companies Louis on the specific deal, Mr. Another government lending program involves the Department of Veterans Affairs. The program, called Patriot Express because of its relatively fast credit checking St. Louis approval time, makes loans up to $500,000 to active-duty military preparing to transition to civilian life, as well as to spouses and survivors of veterans. In a spinoff of that, at least one franchiser is offering financial assistance to disabled veterans who want to start a franchise. At Little Caesars Enterprises Inc., the initial $20,000 franchise fee for a store is waived for disabled veterans, and these franchisees get a 10% discount on equipment, plus about $18,000 to help open the business. "Their first food order -- dough, sauce and cheese -- we give them for free," says David Scrivano, president of the pizza franchiser.

A few other franchisers offer internal financing to the general population.

One is Dwyer Group, which franchises a half-dozen home-and-auto service concepts including Mr.

The Waco, Texas, company will finance up to 70% of the credit checking St. Louis typical initial $42,000 fee. The interest rate -- currently at 9% to 12% -- is based on the franchisee's credit score. fact free credit report Rates "may seem high," says Robert Tunmire, Dwyer'credit checking St. Louis s executive vice president, "but they're not putting their homes up as collateral or anything like that." Dwyer also gives a 10% discount to franchisees who pay cash.

Some would-be franchisees are foregoing loans and tapping their 401(k) retirement funds for financing. It works this way: The franchisee sets up a C corporation that will own and operate his or her business. He or she then rolls over money from a 401(k) credit checking St. Louis into that corporation's profit-sharing plan. The individual then directs that those funds be invested into the franchised business.