Officials in the Utah district office of the Small Business Administration are excited about the news that FRANDATA Corp., Washington, D.C., has been hired to create a system that will streamline small-business franchise loan eligibility decisions.
Stan Nakano, SBA district director, said, "This an exciting step in the franchise registry project. This registry is a breakthrough effort in cutting red tape and will greatly speed up the approval process on franchise loans."He said the registry will be available on an Internet site in about 90 days.
Currently, each time a franchisee or prospective franchisee applies for an SBA loan guaranty, attorneys in SBA field offices review the franchise agreement to determine eligibility. Nakano said this process is time-consuming and sometimes leads to inconsistent decisions in similar agreements submitted to different SBA offices.
Under the new process, the contractor will create and maintain a central registry of eligible franchises as a full review of the franchise documents.