IFA Launches Expanded Credit Access Campaign to Spur Job Creation and Franchise Business Growth
Launch coincides with IFA Sponsorship of SBA National Small Business Week
WASHINGTON, May 16, 2011
International Franchise Association, in conjunction with its sponsorship of the U.S. Small Business Administration's National Small Business Week May 16-20, announced an expanded Credit Access Campaign to unleash much-needed credit flow from lenders to create more than 333,000 new franchise industry jobs and 41,000 new franchise business establishments in 2011.
A newly-produced IFA video
highlights the economic impact of franchising and the challenges posed to the industry and the lending community as the nation pursues economic recovery. The video premiered following last month's unprecedented IFA Small Business Lending Summit, the kickoff event in the Credit Access Campaign, organized in conjunction with the Consumer Bankers Association (CBA), CIT, the National Association of Government Guaranteed Lenders (NAGGL) and the National Restaurant Association (NRA).
There are over 825,000 franchise businesses across 300 different industries creating nearly 18 million jobs and generating over $2.1 trillion to the U.S. economy, according to data prepared for the IFA by PwC. Yet a 20 percent lending shortfall to franchise businesses in 2011 is significantly impacting the ability of franchising to create jobs, according to the latest
IFA Small Business Lending Matrix & Analysis
"Franchise businesses can accelerate job creation faster than other businesses. As evidenced by the industry's 40 percent economic output growth rate over the past decade, if given adequate financing and a strong pro-growth legislative and regulatory environment," said IFA President & CEO Steve Caldeira. "Due to its structured, scalable and proven business model, we believe franchising offers exactly what lenders are looking for- a lower risk way to generate revenue in a still uneven economic recovery."
The Credit Access Campaign will build on the strong momentum of the Lending Summit with a combination of educational, technical assistance and policy initiatives with partner organizations in the business and lending communities. IFA leaders will be speaking at franchise and lending-related events throughout the country on the advantages of franchise lending, and to better educate and develop stronger relationships between franchisors, franchisees and lenders. For a full list of events, visit the
IFA Credit Access Portal
The campaign will allow partners to collaborate on private-sector solutions that will enable long-term job creation and economic growth. Additionally, a Joint Working Group will also advocate for pro-business, pro-lending legislative and regulatory efforts, including meetings with the Federal Deposit Insurance Commission in June, and with federal lawmakers during the
IFA Public Affairs Conference
this September in Washington, DC.
The Credit Access Campaign will also feature discovery days for lenders to learn more about franchise brands and the wide-spread support they offer to franchisees to enable their ongoing success. IFA and its campaign partners will develop webinars to help franchisors and franchisees to be better prepared in their quest to receive bank loans, while also working with lenders to assist them in becoming more knowledgeable and comfortable with lower risk, franchise lending.
IFA will develop a Web-based Franchise Lending Portal for franchisors and franchisees to include step-by-step instructions and an online platform to connect lender-ready franchise borrowers. A task force including CBA, NAGGL, CIT, NRA, and IFA is developing a standardized loan profile to provide the information lenders want to see when evaluating a franchise loan applicant.
As part of this effort, a National Franchise Premier Loan Network will be established for franchisors and lenders who agree to meet pre-determined standards to be part of a "best-in-class" group of lenders, franchisors and franchisees-to facilitate deal flow among the participants.
About the International Franchise Association
The International Franchise Association is the world's oldest and largest organization representing franchising worldwide. Celebrating 50 years of excellence, education and advocacy, IFA protects, enhances and promotes franchising through government relations, public relations and educational programs. Through its awareness campaign highlighting the theme,
Franchising: Building Local Businesses, One Opportunity at a Time,IFA promotes the nearly 18 million jobs and $2.1 trillion of economic activity generated by franchising. IFA members include franchise companies in over 90 different business format categories, individual franchisees and companies that support the industry in marketing, law and business development.