SBA Information Notice 5000-1399 announced the issuance of SOP 50 10 5(I). The new SOP replaces the current franchise review process reflecting changes to the affiliation regulations, and includes policy and process improvements that will reduce time and costs. This SOP update will become effective January 1, 2017.
On January 5, 2017, our lending attorneys addressed the SOP updates, including:
- New requirement to fill out “Addendum to Franchise Agreement”
- Clarification about the definition of “franchise”
- The elimination of the franchise registry
- Who is eligibile to become a franchisee or franchisor
- New responsibilities for lenders vetting franchisees
- Restrictions for businesses that limit patronage
- Fee relief to veteran-owned small businesses
- Updates to credit elsewhere
- Collateral review
Find the new SOP on the SBA’s website. See below for the presentation slides.
Location:
3 Bethesda Metro Center STE 460
Bethesda MD 20814
Contact:
Name: Scott Pacheco
Title:
Email: [email protected]
Phone: (301) 347-1268