As an established franchise business owner, you need a bank that is committed to growing with you. Live Oak Bank is a lending partner that fully understands your franchise and shares your level of commitment and desire to expand. As one of the nation’s top SBA franchise lenders, we offer SBA 7(a) financing tailored to help franchise owners like you fund growth on favorable terms. Our franchise financing experience and industry knowledge allow us to deliver a streamlined loan process that will save you time and money.
Franchise Lenders & Financing
Helping franchise operators grow
Loan Solutions
Acquisition
Purchasing an existing franchise business is often a great solution to hit the ground running. This can include acquisition with conversion, expansion, buying out an existing partner or simply acquiring another location to grow your business. Once you identify the opportunity, we’re here to guide you through the loan process.
New Store Development
Starting a new store is exciting and offers opportunity to work with brands that can elevate your mission. When you’ve determined the market need and identified your project, let us assist you with the financing component.
Commercial Real Estate
Buying a building, renovating or ground-up construction can allow you to expand your current level of service. We provide franchise loan structures to meet your needs and help you avoid costly mistakes throughout the process.
SBA FINANCING FOR YOUR FRANCHISE
Live Oak Bank is a nationally recognized SBA Preferred Lender, which means faster credit decisions and dedicated support in funding your franchise loan. As one of the leading SBA franchise lenders in the country, we provide SBA franchise financing through our SBA loan programs, giving franchise owners the capital they need to acquire, build, and grow.
Not every brand qualifies for an SBA loan for franchise. When evaluating a franchise, our team looks at factors like the brand’s track record, unit-level performance across existing locations, the borrower’s operating experience, number of units, and the terms of the franchise agreement. Because eligibility depends on the specifics of your brand and your background as an operator, it’s confirmed case by case rather than through a general list. Our franchise lending team can walk you through what qualifies, gather the documentation the SBA will need, and tell you where your brand stands. Contact a franchise loan officer today to get started.
Acquiring a location, buying out a partner, or expanding to a new territory can be financed through the SBA 7(a) program, which offers the flexible terms franchise owners need to close quickly. Working capital needs including inventory, staffing, or a store build-out are also well suited to SBA 7(a) financing, since it doesn’t require real estate as collateral.
Why Live Oak
At Live Oak Bank, we combine deep industry knowledge with specialized loan solutions to meet your business’s unique needs. We navigate the lending process alongside you with absolute efficiency and transparency, ensuring you are supported from application to funding. We are proud to invest in your growth because your drive is what drives us forward.
EXPANSION THROUGH COMMERCIAL REAL ESTATE
Live Oak Bank specializes in financing business expansions through the purchase of commercial real estate with SBA loans.
ACQUISITION PROCESS OVERVIEW
There are many steps involved when buying a business. Our acquisition process overview highlights the details of each of the core steps.
SBA Franchise Funding FAQ
An SBA loan for franchises can cover a wide range of costs, including the initial franchise fee, real estate purchase or leasehold improvements, equipment and inventory, working capital, signage, and, in some cases, refinancing existing franchise-related debt.
Timelines vary by lender and complexity, but a well-prepared SBA franchise loan application typically takes anywhere from a few weeks to a couple of months from application to funding.* Loans for brands already on the SBA Franchise Directory tend to move faster, since the franchise agreement doesn’t require a separate SBA eligibility review. Working with an SBA Preferred Lender like Live Oak Bank can also speed up the process, since Preferred Lenders have delegated authority to make credit decisions without waiting on SBA review, which shortens underwriting and closing.
* Your interest rate, terms and speed to receive funds differ based on your creditworthiness, industry and other factors.
Typical down payments for an SBA franchise loan range from 10% to 20% of the total project cost, depending on the lender, the franchise brand, and the borrower’s financial profile. For new businesses, the SBA’s Standard Operating Procedures (SOP) require a minimum equity injection of 10% of total project costs; lenders may require more based on the brand and the borrower’s financial strength.
Our team evaluates each brand individually, looking at qualifiers such as the brand’s track record, how existing units are performing, your experience as an operator, how many units are involved, and the terms of the franchise agreement itself.
Yes. An SBA franchise loan can fund purchasing, opening, or expanding a franchise, covering costs like franchise fees, buildout, equipment, and working capital, typically through the SBA 7(a) program.
From our Resource Center
As part of our commitment to supporting small business owners, we have a library of free educational resources available to anyone. Here’s what you can expect to find in Live Oak Bank’s Resource Center:
- Loan product overviews
- Marketing tips and tricks
- Small business fundamentals
- Live Oak customer spotlights