MaidPro franchises are on the rise as small business loans have significantly increased since the Federal Reserve Bank cut interest rates for Small Business Administration (SBA) loans for the third time at the end of 2019. The current max rate for SBA 7(a) loans is between 7.25 and 9.75 percent, depending on the amount being borrowed. Many new franchisees are utilizing SBA loans to help fund their initial investment.
According to the media, financial institutions are both receiving more applications and being more liberal with their business lending since the latest rate drop. Business loan approvals are up at big and small banks, as well as by institutional investors, with business loans at big banks finally reaching post-recession levels.
This favorable lending climate has many existing business owners investing in their own organizations. The eased lending by banks also makes it an excellent time for entrepreneurs who need to borrow money to become business owners.
MaidPro CEO Mark Kushinsky said, “We’re very optimistic about the current small business lending climate because it empowers our existing franchisees to more easily invest in their businesses, to grow with new locations, and to open second franchises. It also creates a great opportunity for entrepreneurs who’ve wanted to purchase franchise businesses to move forward with their plans, or those who’ve had trouble raising the capital to get started.”
A recent article in Forbes predicted that lending for business purposes will remain strong in the foreseeable future. The article told business owners that they “may not see a better time than now” to invest in themselves.