Senator Catherine Cortez Masto (D-NV) introduced S.2162 (, also referred to as the SBA Franchise Loan Disclosure Act. This legislation simply requires the Small Business Administration to publish SBA loan default data by franchise brand. Why is this important? First, the transparency of information allows the free market to work, prospective franchisees can compare loan default data between franchise brands before they choose to purchase a franchise. If you are in a struggling brand with high default rates, this information may have changed you mind on purchasing your franchise. Second, with more information available, prospective franchisees are less likely to buy into brands with a higher incidence of default. The SBA sets rates and fees based on having its loan programs be self-sufficient, therefore others taking out loans are subsidizing brands with high default rates. If you are in a brand with low default rates, you are paying higher rates and fees to subsidize the bad brands.

Time is of the essence. The bill will be marked up in the Senate Committee on Small Business and Entrepreneurship on Wednesday, May 18. Please take a few minutes to contact your member of Congress!

First, find your Senators. Go to At the top, you will see “Find Your Senator”. Pick your state from the drop down. You have two Senators. You’ll need to hit “Contact”. There should be a way to email them. Fill out your personal information. You’ll likely have to choose a topic, pick “Small Business, Banking/Finance, or Other.

Then copy and paste the following into the text:

I am a franchise owner and a job creator in your state. I am writing you to request your support for S.2612, the SBA Franchise Loan Disclosure Act.

Senator Catherine Cortez Masto (NV) introduced the SBA Franchise Loan Disclosure Act in June 2021. This legislation simply asks the Small Business Administration to publish loan default rates by franchise brands. This added transparency will support free market decisions by franchise buyers to be able to compare actual default rates. Being more informed and avoiding brands with high default rates should not only reduce SBA rates and fees on loans but reduce the exposure to the taxpayer.

On Wednesday, May 18, 2022, S.2162 will be marked up in the Committee on Small Business and Entrepreneurship. I urge you to lend your support to this legislation.

Thank you for your leadership on behalf of America’s small business owners.

AAFD Director of Public Affairs and Advocacy

Keith is the AAFD preeminent voice for political action in support of franchisee rights at both the Federal and State level. Keith has been an active leader and voice for franchisee causes over the past twenty plus years, with a growing track record of bringing franchisee friendly legislation introduced and adopted throughout the USA. Keith is also a multi-unit Subway franchisee, and understands the challenges and opportunities that come with being in business for oneself. He is passionate about protecting the interests of franchisee business owners, and will work tirelessly to ensure that they are treated fairly under the law.