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More Financial Data Transparency for SBA Franchise Loan Borrowers

New rules require franchise companies to share key financial data with potential franchisees using government-backed loans. This helps people better assess risks and potential earnings before taking out a loan, increasing financial awareness.
Key points
Franchise companies must provide average and median first-year revenues of other franchisees.
They must disclose how many new locations closed or changed owners in their first year.
They must provide overall average and median revenues for all their locations.
This information is intended to help potential franchisees make informed financial decisions regarding SBA loans.
The government agency (SBA) will enforce these rules, and companies violating the law may be held liable for outstanding loan balances.
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Additional Information
Print number: 117_S_1120
Sponsor: Sen. Cortez Masto, Catherine [D-NV]
Process start date: 2021-04-14
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Source data: api.congress.gov
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OFFICIAL LEGAL TITLE

Small Business Administration Franchise Loan Transparency Act of 2021

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 117_S_1120.

Which chamber initiated this legislation?

This legislation was initiated in the Senate.

When did the legislative process begin?

The process officially started on 2021-04-14.

What are the main provisions?

Key points include:

  • Franchise companies must provide average and median first-year revenues of other franchisees.
  • They must disclose how many new locations closed or changed owners in their first year.
  • They must provide overall average and median revenues for all their locations.
  • This information is intended to help potential franchisees make informed financial decisions regarding SBA loans.
  • The government agency (SBA) will enforce these rules, and companies violating the law may be held liable for outstanding loan balances.
What is the specific legal status?

The current status is Expired.

Where can I read the full text of this legislation?

The full official text is available at: View full text

Who is the primary sponsor?

The primary sponsor is Sen. Cortez Masto, Catherine [D-NV].

What is the latest detailed status?

The latest detailed status is: Introduced in Senate

Is this summary verified?

Yes. This content was analyzed by AI and verified by the Lustra Judge System on 2025-12-29.

CATEGORIES

Economy