SBA Form 2462, Addendum to Franchise Agreement
What Is SBA Form 2462?
SBA Form 2462, Addendum to Franchise Agreement is a form completed by a franchisee and a franchisor when applying for financing endorsed by the Small Business Administration (SBA). The information provided in the form is used to ensure that no terms of the franchise agreements are enforced against the franchisee during the life of the SBA-guaranteed loan.
The SBA released the latest edition of the form in January 2018. The contents of the form were updated to meet the requirements of the new Standard Operating Procedure (SOP) 50 10 5(J), which became effective January 1, 2018. The most recent SBA Form 2462 fillable version is available for digital filing and download below:
The addendum is used in connection with the SBA 7(a), 504 and Community Advantage Loan programs. Each program is designed to assist for-profit U.S.-based small businesses.
- 7(a) loans are typically used for starting the business, setting up working capital, purchasing equipment or real estate for business purposes.
- SBA 504 loans offer larger amounts of financing that can be used to purchase commercial real estate or heavy machinery and equipment.
- Community Advantage loans offer financing of up to $250,000 to small businesses operating in underserved communities and low-income areas.
SBA Form 2462 Instructions
The form requires specifying the type of agreement used. The available options include:
- A membership agreement;
- A franchise agreement;
- A license agreement;
- A distributor agreement,
- A jobber agreement;
The correct type should be chosen from the drop-down menu. The user should then hit the “tab” key to automatically populate the appropriate terms in all fields on the form. The same should be done with all drop-down menus throughout the form. All remaining fillable fields must be completed manually.
- The first several lines of the SBA Form 2562 should contain the month and date the agreement is made and the names and locations of both participating parties.
- The remaining blank fields will require manually entering the type of agreement (e.g., franchise, license, dealer or membership) and the effective dates
- The completed form must identify the authorized representatives of both parties involved.