New SBA Franchise Directory incorporates improvements advocated for by IFA to expand access to capital for franchisees and support small business growth; An estimated 20% of all SBA loans go to franchises

Washington, D.C. – Today, the International Franchise Association (IFA) applauded the announcement that the Small Business Administration (SBA) will reinstate the Franchise Directory, a tool essential for lenders who are assessing SBA loan eligibility. This action follows the elimination of the Franchise Directory in 2023.

“We applaud the SBA’s efforts to increase efficiency in the financing process for franchisees by restoring the Franchise Directory,” said Michael Layman, IFA Chief Advocacy Officer. “As a centralized and verified location for lenders to check a franchise’s eligibility for SBA financing, the Franchise Directory was a key tool for lenders to efficiently process franchisee loan applications. Its elimination disrupted the development of franchised businesses, causing lenders to pull back from franchise lending, denying would-be entrepreneurs access to critical sources of start-up capital. IFA is proud of our work with the SBA team to reinstate this valuable resource to provide more franchisees the opportunity for small business ownership.”

According to FRANdata, an estimated 20% of all SBA loans go to franchises. Following its elimination in 2023, IFA called for a reinstatement of the Franchise Directory in its 2025 Roadmap for Economic Growth. In a February op-ed in the Atlanta Journal Constitution, IFA President and CEO Matt Haller called its resurrection “a sensible and bipartisan” step.

The SBA Directory has also served as a tool for prospective franchisees as they evaluate franchise opportunities.

In reinstating the Franchise Directory, the SBA identified opportunities to optimize the process for determining if a franchise meets the criteria for listing in the Directory. Key improvements advocated for by IFA and reflected in the updated version of the Franchise Directory include:

  • Replacing the SBA Addendum (Form 2462 or negotiated addendum) with a certification signed by the franchisor acknowledging the conditions required to be listed on the Directory, including many conditions franchisors will recognize from the prior Franchise Directory.
  • Franchisors previously included in the Directory may sign the certification within a specified period to remain on the Directory.
  • Franchisors not previously included in the Directory must submit an application to the SBA demonstrating they meet the eligibility criteria for listing in the Direcotry.
  • Listing on the Franchise Directory will remain at no cost to franchisors. A franchisor must be listed in the Directory for its franchisees to access SBA funding.

# # #

About the International Franchise Association:

Celebrating over 60 years of excellence, education, and advocacy, the International Franchise Association (IFA) is the world’s oldest and largest organization representing franchising worldwide. IFA works through its government relations and public policy, media relations, and educational programs to protect, enhance and promote franchising and the approximately 830,000 franchise establishments that support nearly 8.8 million direct jobs, $896.9 billion of economic output for the U.S. economy, and almost 3 percent of the Gross Domestic Product (GDP). IFA members include franchise companies in over 300 different business format categories, individual franchisees, and companies that support the industry in marketing, law, technology, and business development.

 

Press Contact

Katherine Knight Patterson
Katherine Knight Patterson

VP, Communications

202.662.0783

kpatterson@franchise.org

Search