Quiznos to launch micro-loan program to help fund franchisees

(Reuters) - Quiznos, the No. 2 U.S. sandwich chain, said it plans to launch a micro-loan initiative to provide funding for current franchise owners amid a tepid lending environment.

The microloans are available to existing owners with a strong operational history and are intended to be used for the acquisition of new high-quality sites and the re-opening of existing Quiznos sites, the company said in a statement.

Obtaining funds is increasingly tough in the current environment as the economic recession, fueled by the housing bust, has saddled banks with big losses, leading them to cut back on lending.

Based on the success of Quiznos' first microloan in February of this year, six additional franchise owners nationwide are in the process of securing microloans from Quiznos and many more are under consideration, the company added.

(Reporting by Amitha Rajan in Bangalore; Editing by Anne Pallivathuckal)