For many international investors, the initial instinct is to head for “brand name” states like California, New York, or Florida. However, savvy E-2 buyers are increasingly looking toward the South and Midwest.
sba
The “Safe Bet” List: Top Franchises Ranked by Lowest SBA Default Rates
To keep the data reliable, we look at charge-offs—instances where the borrower couldn’t repay and the SBA had to pay the lender guarantee. We’ve also filtered this list to brands with over 25 loans. Why? Because a brand with only 2 loans and 0 defaults doesn’t have a large enough sample size to prove it’s a “safe bet.”
What does the SBA look at when deciding to loan on a business deal?
When an SBA lender evaluates a 7(a) loan application, they are essentially looking for a “sound” business case that minimizes the risk to the government, which guarantees a large portion of the loan.
Lenders focus on “The Five Cs of Credit” but through the specific lens of SBA regulations.