SCP looks to work with franchisors that have a demonstrated track record of community involvement who want a reliable source of financing for their franchisees. Financing will be structured as subordinated debt so that it can be viewed as equity by more senior lenders. This "unencumbered" capital is generally difficult for franchisees to secure because banks will not provide loans for this purpose.
The maximum amount of financing available is $300,000 per franchise but the actual amount will vary depending on the needs of a particular franchisee and the number of employees that will be hired through community programs that help those facing employment barriers.
Interest rates are very competitive with the industry, but we also offer franchisees an extra incentive - the more eligible hires you bring onboard, the lower your interest rate may become. Loans are generally amortized over a period of five years with monthly interest plus principal payments and are conditional upon the provision of a personal guarantee, good credit history and an agreement to provide ongoing financial and social hiring reporting.
To date, SCP has invested in franchises representing a cross section of industries. For full details please visit our Portfolio Section.