Financing is one of the first big steps in franchise ownership. It can feel a little heavy at first, especially if you have not used small business lending before. At Touching Hearts at Home, we see this all the time. Great future owners come in with a heart for caregiving and the drive to build something meaningful, but they want a clear path to funding.
If you’re ready to open your own low-cost home care franchise and want to understand SBA loans simply, you are in the right place. Touching Hearts at Home is looking for an ideal candidate like you.
An SBA loan is a business loan from an approved bank or lender that the Small Business Administration partly guarantees. The lender gives you the money, and the SBA backs a portion of it, which lowers the lender’s risk and can make approval easier for qualified borrowers.
For a low-cost home care franchise, this type of loan is a strong fit because the business doesn’t need a big build-out or expensive equipment. Most early expenses go toward hiring, training, local marketing, and working capital while you grow your client base. SBA loans are built to cover those real launch needs, and their longer terms can keep monthly payments more manageable during your ramp-up period.
There are two SBA programs you will hear about most.
This is the SBA’s flagship program and the most common choice for funding a Touching Hearts at Home senior care franchise because it’s flexible and built for start-ups. It can typically cover:
The SBA guarantee backs part of the loan, which lowers risk for the lender and can make approval more realistic for qualified borrowers. You will still be personally underwritten, and lenders usually look at:
This program is aimed at fixed assets, mostly real estate or large equipment. It can be a great option later if you want to buy an office property, but it is not the usual choice for launching an affordable franchise like ours.
The SBA Franchise Directory is a big plus for franchise borrowers. It lists brands that are already approved for SBA eligibility, so lenders do not have to review the franchise structure from scratch each time. That step, being pre-cleared, can help speed up the approval process.
When you move forward with our elder care franchise opportunity, we provide the franchise documents your lender needs, so the brand side of the loan process feels straightforward. Your lender still has to approve you personally, but one major part of the review is already taken care of.
SBA loans are common for many business owners, but they are not the only path. Some franchisees prefer to reduce debt or move faster. Here are two options we see.
A ROBS lets you use eligible retirement funds to invest in a business without taking a taxable withdrawal. The money rolls into a plan that buys stock in your new C corporation. It must be set up correctly to stay compliant.
ROBS can work well if you want to limit borrowing. It can also lower monthly pressure early on. But it comes with real risk. If the business struggles, your retirement savings are on the line. The IRS also watches these plans closely, so use an experienced provider and talk to your tax adviser before you commit.
Some owners choose a HELOC or a second mortgage to fund part of their launch. Others add a smaller unsecured loan on top of SBA funding. These options can be quicker than SBA, but they often have higher rates or shorter payback periods.
If you use these tools, the goal is comfort. You want a payment that still leaves room to hire well and market your services in the first year.
Here is a simple checklist we suggest for future Touch Hearts senior care franchise owners. It keeps you organized and helps lenders trust the plan.
Given the stricter SBA setup in 2025, clean documents and steady communication make a big difference.
Touching Hearts at Home is a people-first business in the senior care industry built around helping older adults live with comfort and dignity in their own homes. As an owner, your role is to build a local team that provides companionship and day-to-day support, while you guide operations and community connections.
This model is intentionally built to be a manageable investment for new owners. You don’t need a storefront, and you’re not investing in big equipment right out of the gate. Most of your early energy goes into the things that actually move the needle—bringing on great caregivers, getting your name out in the community, and putting a few simple systems in place so care stays consistent as you grow.
A lot of franchisees look into SBA 7(a) loans because they tend to work well for service businesses with lower startup costs. They can help cover the initial fees and give you some breathing room for hiring and early marketing. If an SBA loan doesn’t feel like the right fit, there are other routes (like ROBS or tapping home equity) that can work with careful planning and good guidance.
Get in touch with Touching Hearts at Home. We’ll guide you through the funding conversation, share the documents lenders need, walk through your start-up budget, and connect you with financing partners who understand franchise lending.
