Credit Lending on the Rise for Foodservice Industry

Jessica SarterBoeFly In The News

Quick Service Restaurant Magazine

Quick Service Restaurant MagazineAlthough franchise lending has been fairly static from March 2011 to March 2012 and franchisee credit access remains below its long-run average, lending to franchisees in industries such as food service and hospitality has been greater than average.

While just 9.6 percent of SBA loans analyzed by dollar amount were extended to franchise businesses, the most active industries witnessed greater-than-average distribution to franchises. Specifically, franchisees received 49.3 percent of all limited-service restaurant loans, 47.3 percent of hotel loans, 31.1 percent of loans to all gas stations with convenience stores, and 14.9 percent of all full-service restaurant loans.

“It is also positive to see higher-than-average levels of credit access among franchisees in large industries such as food service and hospitality, which demonstrates that these franchise businesses are growing even in the wake of the financial crisis. We anticipate that these businesses are poised for further growth in the coming months.”

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