SBA Franchise Loan Default Disclosure Act – Senators Cortez Masto & Elizabeth Warren Co-Sponsors
We support the Senate Bill S.2162 SBA Franchise Loan Default Disclosure Act which would require the Small Business Administration to publish loan default rates by franchise brand. The Bill is sponsored by Senator Catherine Cortez Masto & Senator Elizabeth Warren is the original co-sponsor. It should be a no-brainer… right? … Right? Sean Kelly
(UnhappyFranchisee.Com) On 6/22/21, Senator Cortez Masto and original co-sponsor Elizabeth Warren introduced a bill that would require the Small Business Administration (SBA) to publish SBA loan default rates by franchise brand.
Currently, franchise loan default rates can be found but are very difficult to find, parse through and decipher as they are contained in large, difficult-to-navigate Excel files.
The data is often inconsistently organized and entered (some might say this is intentional).
What do you think? Will anyone actually oppose publication of the loan defaulters that prompt the most mini-bank-bailouts that reward SBA lenders for making bad loans?
Here is a PDF version of the proposed Senate Bill S.2162 SBA Franchise Loan Default Disclosure Act
Sponsor: Sen. Cortez Masto, Catherine [D-NV] (Introduced 06/22/2021)
Original Co-sponsor: Sen. Warren, Elizabeth [D-MA]*
Committees: Senate – Small Business and Entrepreneurship
Latest Action: Senate – 06/22/2021 Read twice and referred to the Committee on Small Business and Entrepreneurship.
Description: A bill to require the Small Business Administration to publish loan default rates by franchise brand, and for other purposes.
SBA Franchise Loan Default Disclosure Act
117th CONGRESS
1st SessionS. 2162
To require the Small Business Administration to publish loan default rates by franchise brand, and for other purposes.
IN THE SENATE OF THE UNITED STATES
June 22, 2021
Ms. Cortez Masto (for herself and Ms. Warren) introduced the following bill; which was read twice and referred to the Committee on Small Business and Entrepreneurship
A BILL
To require the Small Business Administration to publish loan default rates by franchise brand, and for other purposes.
Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the “SBA Franchise Loan Default Disclosure Act”.
SEC. 2. PUBLICATION OF DEFAULT RATES BY FRANCHISE BRAND.
(a) Definitions.—In this section—
(1) the terms “Administration” and “Administrator” mean the Small Business Administration and the Administrator thereof, respectively; and
(2) the term “franchise” has the meaning given the term in section 436.1 of title 16, Code of Federal Regulations, as in effect on July 1, 2007.
(b) Publication Of Default Rates.—The Administrator shall publish and update on a quarterly basis loan default rates by franchise brand during the preceding 10-year period on the website of the Administration in a manner that is publicly accessible and linked to the Franchise Directory of the Administration.
What do you think? Are you in support of proposed Senate Bill S.2162 SBA Franchise Loan Default Disclosure Act ?
Why or Why Not? Please leave a comment below, or email to UnhappyFranchisee [at] Gmail [dot] Com.
ALSO READ:
FRANCHISE DISCUSSIONS by Company
United Franchise Group (UFG) GRAZE CRAZE Franchise Warning
Senator Cortez Masto: 2021 Franchise Report & Discussion
ARE YOU FAMILIAR WITH THE SBA GUARANTEED LOAN PROGRAM FOR FRANCHISES? SHARE A COMMENT BELOW.
TAGS: Senator Cortez Masto, Elizabeth Warren, Small Business administration, SBA, SBA loans, SBA Franchise Loans, SBA loan defaults, SBA Franchise Loan Default Disclosure Act, Senate Bill S.2162
If you think this legislation is important, a simple action by you can help. Go to http://www.senate.gov. On the menu, hit “Senators”. Then find the two Senators for your state. Go to their page and find the contact page. Then ask them to support S.2162 and cosponsor it. Tell them it will provide more transparency, and if applicable, tell them how it would have helped you. If you’ve had a franchise failure, tell them how having this data may have made a difference. Taking action is what matters!
Sean,
As much as I’d like to add my thoughts on this, I don’t feel I can…or should. Why?
Because I write for the U.S. Small Business Administration.
I hope you’re cool with this.
The Franchise King®, Joel Libava
Joel:
Comment however you’re comfortable. However, know that Commissioner Chopra and others actually employed by the FTC are sharing their opinions, positive and negative. The FTC has called for public comment on The Franchise Rule and has begun open commenting sessions inviting comment on all FTC matters.
So I don’t think your comments would be unwelcome as long as you stay professional and constructive like me ;)
Plus, to point out the obvious, you’re a King.
Sean