67% of SBA 7(a) loans approved in 2023 went to franchise buyers, yet most Dayton franchisees never explore how SBA franchise financing offers longer terms and lower down payments than conventional franchise loans.
What is an SBA franchise loan? An SBA franchise loan is government-backed financing (typically SBA 7(a)) designed for buying, expanding or refinancing franchises listed on the SBA Franchise Registry. Terms stretch to 10 years for equipment and 25 years for real estate, with down payments as low as 10%.
Which franchise programs qualify for SBA financing? The SBA Franchise Registry lists over 1,200 approved brands. Dayton-area operators opening Subway, UPS Store, Anytime Fitness and Great Clips locations routinely use SBA franchise financing because registry inclusion streamlines underwriting and shortens approval windows.
How does a broker help with franchise lending? A licensed broker shops your application to multiple SBA franchise lenders simultaneously, comparing term flexibility, collateral requirements and closing speed. Brokers also bundle equipment financing or working capital into one package rather than forcing franchisees to manage separate vendors.
What down payment do franchise loans require? SBA 7(a) franchise loans typically require 10-20% equity injection. Conventional franchise financing often demands 25-30%. Working with a broker surfaces lenders willing to count equipment equity, inventory and even brand-development fees toward your contribution.
Dayton's commercial real estate landscape splits between legacy industrial sites near Moraine and modern retail strips along Woodman Drive in Kettering. Franchisees face two recurring obstacles: landlords in Beavercreek Town Center and The Greene demand personal guarantees on build-out costs, and national franchisors require proof of liquidity *before* site approval. A loan franchise structure through SBA 7(a) solves both by financing tenant improvements and providing documented reserves that satisfy franchisor requirements. Because Burnside Lending Group operates as a broker, we match your franchise's collateral profile to lenders comfortable with Dayton's mixed-use zoning and the seasonal revenue swings common near Wright State University.
Loan programs
SBA 7(a) loans remain the workhorse for franchise with financing needs. A Huber Heights franchisee opening a second Smoothie King location can finance the build-out, initial inventory and three months of working capital under one note, amortized over ten years instead of the five-year balloon typical of conventional franchise loans.
Equipment financing layers onto SBA 7(a) when a Fairborn auto-service franchise requires lifts, diagnostic computers and bay ventilation that exceed the SBA's collateral cap. Splitting hard assets into a separate equipment note preserves your SBA loan capacity for leasehold improvements and franchise fees.
Working capital lines bridge the gap between your grand opening and cash-flow breakeven. A Centerville franchisee in the food sector often waits 90 days for delivery apps to ramp and catering contracts to close; a revolver tied to your SBA package covers payroll without tapping personal savings.
We begin by verifying your franchise appears on the SBA Franchise Registry, then request your Franchise Disclosure Document to identify any lending restrictions buried in Item 7. Next, we map your site's demographics against the franchisor's performance benchmarks. A Vandalia quick-service restaurant benefits from interstate visibility along I-75, but lenders weigh traffic counts differently than a West Carrollton tutoring franchise near elementary schools. As a broker, we present your application to lenders who already understand Dayton's submarket nuances, shortening due diligence and preserving term flexibility. After loan approval, we coordinate timing so equipment vendors, contractors and franchisor milestones align without penalty fees.
A prospective franchisee targets a pet-grooming concept for a 1,800-square-foot suite in Xenia's downtown revitalization district. Total project cost runs $285,000: $45,000 franchise fee, $120,000 leasehold improvements, $80,000 equipment (tubs, dryers, POS), $40,000 working capital. The franchisee brings $30,000 cash and a 680 credit score. Burnside brokers an SBA 7(a) note covering $255,000 over ten years, pairs it with an equipment lease for the hydraulic tables, and arranges a $15,000 business line of credit to cover the first quarter's payroll. Because the site sits in a Greene County opportunity zone, one lender offers a 0.25-point rate adjustment, improving monthly cash flow by $140.
Serving the Dayton area
We know which lenders fund which kinds of Dayton businesses, and we position your file where it fits.
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Common questions
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