In the past six months there have been numerous changes in the funding arena that directly impact franchise funding.
Dallas Kerley, Benetrends Financials’ Chief Development Officer, discusses “Issues Impacting Small Business Funding in 2017”. This article was originally published in the March 2017 issue of Franchising World Magazine.
Addendum to the article:
As predicted, the Federal Reserve rates are on the rise. As of March 15, 2017, the fed rate increased for the second time in three months. Currently at 1%, more increases are expected throughout the year.
When the fed rate increases, so does the prime interest rate, which is now at 4%. As SBA loans are prime + 2.75%, the rate for SBA loans is now at 6.75%.
While the increasing rates make SBA loans less attractive to small business owners, there is still a way to obtain funding. By using retirement funds, utilizing Benetrends’ Rainmaker Plan®, an entrepreneur can obtain the funding to open a new business tax-deferred and penalty-free.