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UPS Capital Business Credit, a unit of UPS Capital, is offering what are known as SBA 7(a) loans guaranteed by the U.S. Small Business Administration to help franchisees start new or acquire existing franchises. UPS Capital Business Credit is one of the nation's leading SBA 7(a) lenders and last year became a national Preferred Lender Program participant, enabling the company to move quickly and easily process SBA loans.

"Small-business owners such as franchisees are vital components of our nation's economy and UPS Capital is committed to helping them grow and prosper," said Bob Bernabucci, president, UPS Capital. "UPS Capital's goal is to work with franchisors not only to provide financial services for the benefit of individual franchisees but also to help the franchisors streamline the flow of goods and information within their networks."

UPS Capital plans to offer the franchise finance portfolio through preferred lender agreements with franchisors in the food, lodging, petroleum, automotive, healthcare, childcare, education and entertainment industries. Franchisors that already have identified UPS Capital Business Credit as a lending source for franchisees include Del Taco and Jack in the Box Inc.

Proceeds from SBA 7(a) and 504 loans, which range from $350,000 to $4 million, can be used by franchisees to:

• Start up a new franchise or acquire an existing franchise.
• Purchase machinery and equipment.
• Refinance existing debt.
• Undertake leasehold improvements, including leased building enhancements
• Purchase commercial real estate.
• Pay for construction costs and franchise fees.
• Acquire working capital and inventory.

UPS Capital Business Credit facilitated 248 SBA 7(a) loans valued at more than $153.4 million, tripling its previous annual SBA 7(a) lending volume for the fiscal year that ended Sept. 30, 2005, and placing it in the top 25 among SBA 7(a) lenders as measured by dollar value of loans.

In addition to SBA loans, UPS Capital offers other franchise-related financial services, including merchant services and the UPS Capital Visa Platinum Business Card.

UPS is the world's largest package delivery company and a global leader in supply chain services, offering an extensive range of options for synchronizing the movement of goods, information, and funds. Headquartered in Atlanta, Ga., UPS serves more than 200 countries and territories worldwide. UPS's stock trades on the New York Stock Exchange (UPS), and the company can be found on the Web at UPS.com.

Products may not be available in all areas and may be modified based on requirements. Credit availability is subject to approval. The UPS Capital Visa Platinum Business Card is offered and issued by Chase Bank USA, N.A. ("Chase") and is subject to Chase's terms and conditions. All cards are subject to underwriting and credit approval by Chase. SBA regulations prohibit UPS Capital Business Credit from facilitating loans on behalf of franchisees of The UPS Store or Mail Boxes Etc. under the SBA's Preferred Lender Program.

For more information about UPS Capital, please visit www.capital.ups.com.

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