Funding multiple franchise units under one loan

searcher profile

July 16, 2024

by a searcher from Texas Tech University in Austin, TX, USA

I am working on a multi-unit franchise deal. They all belong to the same franchise and within nearby geographic locations.


Does SBA or other vehicles allow to combine multiple units under one loan or is it mandatory to have a separate loan for each unit?

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commentor profile
Reply by a lender
from Eastern Illinois University in 900 E Diehl Rd, Naperville, IL 60563, USA
You can certainly combine multiple units under one loan and we have done this in the past. If it is an acquisition, it is easy to do. If you are building out new locations for a franchise, sometimes it is easier to do separate loans that way the costs can be tracked separately for each project. But you can do an SBA 7A loan for multiple units. If you have additional questions or need assistance with the financing, you can reach me here or directly at redacted Good luck with the search.
commentor profile
Reply by a lender
from Florida State University in St. Petersburg, FL, USA
Hello Sathya,

I specialize in SBA franchise lending, both start-up and acquisition, at First Bank of the Lake. Can definitely discuss some potential scenarios to get multi-unit agreements funded under the same umbrella - it is possible, but pends on industry.

It would be great to touch base and discuss, as I have some creative solutions on paths forward. Feel free to reach out via call or text to###-###-#### or redacted
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