More people are seeking out loans from the Small Business Administration, which are partially guaranteed by the government, making them less risky — though some lenders participating in the program are tightening their lending criteria as well. The shakeout is partly due to the mounting defaults by franchisees who got in during good times, perhaps short-changed themselves on working capital and then, when the economy faltered, couldn’t cover their loans. The standard SBA loan for franchisees is known as the 7(a), which is issued by a bank or other qualified lender, and partly guaranteed against default by the government. SBA loans include those for short-term working capital and equipment, which often have a five- to six-year maturity; and real-estate loans, which can run for 20 years or more. For at least one big SBA lending participant, Wells Fargo Bank, a unit of Wells Fargo & Co. Last year, Wells Fargo closed 209 SBA loans to franchisees and “year over year we’re up,” he says. read more