# Small Business Administration Franchise Loan Transparency Act of 2021

This bill requires the Small Business Administration (SBA) to be more transparent about how it handles loans to people who want to buy franchises. Right now, if you're thinking about buying a McDonald's, a Subway, or any other franchise business, you might get an SBA loan to help finance it. The problem is that there's not much public information about how many of these loans the SBA approves, how much money goes to franchises versus other small businesses, or how well these franchise loans actually perform over time.

The bill would require the SBA to collect and publish detailed data about franchise loans, including how many loans are approved, how much money is loaned out, what types of franchises get funded, and how many borrowers end up defaulting on their loans. This information would be made available to the public so that potential franchise buyers, lenders, and policymakers can see the real picture of how franchise lending works. It's similar to how banks have to report information about their lending practices—the idea is that transparency helps people make better decisions and helps identify any problems in the system.

For most people, this bill won't directly change anything about getting a franchise loan. However, it could help protect potential franchise owners by giving them better information about the risks involved. If you're considering buying a franchise and applying for an SBA loan, you'd eventually be able to see statistics about how successful other franchise owners have been with similar businesses, which could help you decide whether it's a good investment. The bill essentially shines a light on an area of small business lending that has been somewhat hidden from public view.

Small Business Administration Franchise Loan Transparency Act of 2021

Cortez Masto, Catherine

Small Business Administration Franchise Loan Transparency Act of 2021 This bill requires a franchisor seeking&nbsp;guaranteed lending from the Small Business Administration to disclose historical revenue and store-closure information to any prospective franchisee before the loan will be approved.