The Small Business Administration (SBA) Franchisor Certification was used with the 2015 or 2016 version of the franchise agreement, with an addition negotiated by SBA, to confirm that the agreement has been verified by SBA, that it has not established an affiliation relationship between the franchisee and the franchisee and that the terms of the credit applicant`s franchise agreement have not changed from those of the previous one. All applications for approval of franchise agreements and the directory should be sent to franchise@sba.gov. For all franchised loans approved for the remainder of this calendar year, lenders must continue to follow the current procedures outlined in SOP 50 10 5 (I). The SBA reported that the technical corrections to BE MADE to SOP 50 10 5 (J) were being processed. We will dwell on any other changes or developments related to the new franchise verification process. For more information, please contact Jennifer at 267-470-1206 or jborra@starfieldsmith.com. Recently, the SBA reviewed its approach to financing franchisees in order to streamline the franchise register. The registry is an SBA program that lists the names of franchises whose franchisees can benefit from an optimized verification process. Prior to the new SBA program, which came into effect in January 2017, the SBA had set up an SBA registry in which the Agency reviewed a franchisor`s franchise agreement and disclosure documents to determine whether its franchisees were sufficiently independent as business owners to qualify for a loan guaranteed by SBA.

When processing credits under delegated or undetered authority, lenders / CDC must document the file attesting that the mark is present in the directory and identify the SBA franchise and franchise identification code when submitting the application in E-Tran or SBA One. If the trademark is not mentioned in the directory, the delegated lenders/PCLP CDC can determine whether or not the agreement meets the FTC definition of a franchise, and SBA will verify this provision at the time of purchase of the collateral or during the verification of the lender`s supervision. For applicants for small businesses operating under more than one brand, lenders must confirm that all marks critical to the applicant`s business are on the list. Lenders must receive copies of all exported franchise documents, Form SBA 2462 or SBA Negotiated Addendum and all other agreements between the franchisor and the applicant prior to the first payment of the credit. As of January 2018, Form SBA 2463 will no longer be used with the SBA Negotiated Addendum. The franchisee must provide an annual certification on Form SBA 2464 (Annual Franchisor Certification) to demonstrate that their current agreement can continue to use the SBA Negotiated Addendum or still does not require a supplement. Yes, every year, to confirm that no changes have been made to a previously approved negotiated amendment The list does not contain any link to the franchise agreement verified by the SBA or the negotiated amendment for a trademark. . . .