BUSINESS INSIGHTS | Sponsored by SomerCor Financing for Franchises with the SBA 504 Program A franchise location, while tied to a national or regional brand, is still a small business. It is up to the franchisee to find the necessary capital to open and operate. When it comes to financing the buildout of a franchise, the Small Business Administration (SBA) 504 loan program can be a great option for both new and seasoned franchisee owners. Recent updates to the rules for franchise financing through the SBA 504 program, set to finalize at the end of the year, have streamlined the process for both borrowers and lenders. Borrower Benefits of the SBA 504 Loan The SBA 504 loan program is one of the most popular financing programs offered by the SBA. This business friendly option helps business owners build, buy, and refinance fixed assets - like owner- occupied commercial real estate and heavy equipment. Key features of the SBA 504 loan include: Low down payment - up to 90% financing; Below-market interest rate; Long-term fixed rates - 10, 20, or 25 year terms. Borrowers enjoy predictable and lower monthly payments. This financing structure also frees up working capital that would normally be designated for loan payments, which can instead be reinvested into growing the business. SBA 504 a Fit for Franchise Financing According to the SBA's public data, nearly 10% of the SBA 504 loans authorized since FY2010 were for franchises - including brands like Ace Hardware, Culver's, Dunkin' Donuts, Ford, Planet Fitness, Primrose Schools, and State Farm. Franchise opportunities for entrepreneurs span industry - from food, to fitness, to fun experiences. At time of printing, just under 8,000 brands are currently eligible for SBA financing. The SBA 504 loan is a great option for borrowers seeking financing for a franchise that involves the purchase of commercial real estate. Loan proceeds may also be used to update or expand an existing franchise location to meet brand standards. While there are limits to the use of the loan, in addition to fixed assets, funds may also be used to cover certain soft costs, like legal fees, appraisals, furniture and fixtures, and interim interest. Streamlined Process for SBA 504 Franchise Financing This year, the SBA officially launched the SBA Franchise Directory. The Directory helps lenders and certified development companies (CDCs), like SomerCor, evaluate the eligibility of small businesses that operate under a franchising agreement. The Directory contains an up to date list of all franchises and other brands eligible for SBA financial assistance. A brand's inclusion in the directory is not an endorsement by the SBA and does not ensure success of the business or automatic authorization of the loan. However, this update streamlines the process for franchisees seeking an SBA 504 loan, as lenders and CDCs will no longer need to review individual brand documentation to determine eligibility. Franchisors can submit their brand information to the SBA for review and inclusion in the Directory. In 2026, any franchise not listed in the Directory will not be eligible for SBA financing. Current and potential franchisees may also submit brand information to the SBA for consideration, but final approval is dependent confirmation from the franchisor. Connect with a member of the SomerCor team today at www.somercor.com to learn how the SBA 504 loan can support your franchise or small business client. Michael Piazza - Senior Vice President & Loan Officer, SomerCor somercor ACCREDITED SBA 504 LOAN LENDER PROGRAM Expand Your Business with an SBA 504 Loan Get the affordable, long-term financing you need to buy, build, or refinance commercial real estate or equipment for your business. The SBA 504 loan offers competitive rates and flexible terms - helping you invest in your future without sacrificing working capital. Why Choose the SBA 504? Lower interest rates Fixed 20 or 25 year terms Lower monthly payments Improve cash flow Payment predictability Use 504 REFI to access equity Let's Talk About Your Business Financing Needs Contact the SomerCor team today at 312-360-3300 or hi@somercor.com and discover how the SBA 504 loan can support your business growth. Scan the QR Code to learn more at SomerCor.com SomerCor proudly serves Illinois, Kenosha and Rock counties in Wisconsin, and Jasper, Lake, Newton, and Porter counties in Indiana. BUSINESS INSIGHTS | Sponsored by SomerCor Financing for Franchises with the SBA 504 Program A franchise location , while tied to a national or regional brand , is still a small business . It is up to the franchisee to find the necessary capital to open and operate . When it comes to financing the buildout of a franchise , the Small Business Administration ( SBA ) 504 loan program can be a great option for both new and seasoned franchisee owners . Recent updates to the rules for franchise financing through the SBA 504 program , set to finalize at the end of the year , have streamlined the process for both borrowers and lenders . Borrower Benefits of the SBA 504 Loan The SBA 504 loan program is one of the most popular financing programs offered by the SBA . This business friendly option helps business owners build , buy , and refinance fixed assets - like owner- occupied commercial real estate and heavy equipment . Key features of the SBA 504 loan include : Low down payment - up to 90 % financing ; Below - market interest rate ; Long - term fixed rates - 10 , 20 , or 25 year terms . Borrowers enjoy predictable and lower monthly payments . This financing structure also frees up working capital that would normally be designated for loan payments , which can instead be reinvested into growing the business . SBA 504 a Fit for Franchise Financing According to the SBA's public data , nearly 10 % of the SBA 504 loans authorized since FY2010 were for franchises - including brands like Ace Hardware , Culver's , Dunkin ' Donuts , Ford , Planet Fitness , Primrose Schools , and State Farm . Franchise opportunities for entrepreneurs span industry - from food , to fitness , to fun experiences . At time of printing , just under 8,000 brands are currently eligible for SBA financing . The SBA 504 loan is a great option for borrowers seeking financing for a franchise that involves the purchase of commercial real estate . Loan proceeds may also be used to update or expand an existing franchise location to meet brand standards . While there are limits to the use of the loan , in addition to fixed assets , funds may also be used to cover certain soft costs , like legal fees , appraisals , furniture and fixtures , and interim interest . Streamlined Process for SBA 504 Franchise Financing This year , the SBA officially launched the SBA Franchise Directory . The Directory helps lenders and certified development companies ( CDCs ) , like SomerCor , evaluate the eligibility of small businesses that operate under a franchising agreement . The Directory contains an up to date list of all franchises and other brands eligible for SBA financial assistance . A brand's inclusion in the directory is not an endorsement by the SBA and does not ensure success of the business or automatic authorization of the loan . However , this update streamlines the process for franchisees seeking an SBA 504 loan , as lenders and CDCs will no longer need to review individual brand documentation to determine eligibility . Franchisors can submit their brand information to the SBA for review and inclusion in the Directory . In 2026 , any franchise not listed in the Directory will not be eligible for SBA financing . Current and potential franchisees may also submit brand information to the SBA for consideration , but final approval is dependent confirmation from the franchisor . Connect with a member of the SomerCor team today at www.somercor.com to learn how the SBA 504 loan can support your franchise or small business client . Michael Piazza - Senior Vice President & Loan Officer , SomerCor somercor ACCREDITED SBA 504 LOAN LENDER PROGRAM Expand Your Business with an SBA 504 Loan Get the affordable , long - term financing you need to buy , build , or refinance commercial real estate or equipment for your business . The SBA 504 loan offers competitive rates and flexible terms - helping you invest in your future without sacrificing working capital . Why Choose the SBA 504 ? Lower interest rates Fixed 20 or 25 year terms Lower monthly payments Improve cash flow Payment predictability Use 504 REFI to access equity Let's Talk About Your Business Financing Needs Contact the SomerCor team today at 312-360-3300 or hi@somercor.com and discover how the SBA 504 loan can support your business growth . Scan the QR Code to learn more at SomerCor.com SomerCor proudly serves Illinois , Kenosha and Rock counties in Wisconsin , and Jasper , Lake , Newton , and Porter counties in Indiana .