February 2010 Franchising World

Access to credit for franchise businesses remains top issue in 2010.  

Karen G. Mills, administrator of the U.S. Small Business Administration will address members of the International Franchise Association during its 50th Annual Convention in San Antonio Feb. 5-8.

“We are pleased that Administrator Mills will join us in San Antonio,” said IFA President and CEO Matthew Shay. “We have appreciated Administrator Mills’ and President Obama’s willingness to listen to our concerns about access to credit and their support for many of our recommendations to make the SBA loan program more usable for our members.”

Hands-on Management Style Succeeds
Mills will address IFA members Mon. Feb. 8, at the San Antonio Convention Center. Since 1983, Mills has been an active hands-on investor in and successful manager of small businesses. She also has distinguished herself as an advocate for small-business policy that encourages innovation, economic development and job creation. Mills has spent much of her career working with small manufacturing firms, including producers of hardwood flooring, refrigerator motors and plastic injection molding. During the recession of the early 1990s, her hands-on management and commitment to innovation is credited with helping several small manufacturers increase efficiency and competitiveness, and ultimately survive in a tough economy.

SBA serves a leading role in helping small-business owners and entrepreneurs secure financing, technical assistance, training and federal contracts.

“Administrator Mills attendance at the convention is timely,” Shay said. “Access to credit remains a major hurdle to franchise business expansion. Our analysis predicts a $3.4 billion shortfall in lending to franchise businesses this year, preventing the creation or maintenance of 134,000 jobs and production of $13.9 billion of annual economic output. We look forward to continued discussions with the Obama administration and Congress on policies that encourage more lending to franchise businesses.”

Seeking Credit Solutions
IFA has been actively engaged in working with the Obama administration and Congress on solutions to the credit crisis. For example, IFA leaders have testified multiple times recently on recommendations for policy changes, held several meetings with Treasury, Federal Reserve and SBA officials about the situation and participated in a White House forum last fall with Treasury Secretary Tim Geithner and Mills to explore new ideas and strategies for expanding access to financing for small businesses.

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