For immediate release
Contact: Alisa Harrison, 202-662-0766
aharrison@franchise.org
www.twitter.com/IFADC
WASHINGTON, July 29, 2010—The International Franchise Association today applauded the Senate for passing legislation that increases capital access for franchised small businesses.
“Passage of the Small Business Lending Fund Act by the Senate puts franchised businesses one step closer to increased credit availability that will help them grow and expand their businesses,” said IFA President and CEO Stephen J. Caldeira. “IFA members have strongly advocated for the past year an increase in the Small Business Administration loan limit from $2 million to $5 million and an extension of the 90 percent guarantee to lenders. These issues are a top priority for IFA, and we are pleased that the Senate has acted. We urge Congress to quickly reconcile the Senate and House versions of the bill and send these needed changes to President Obama’s desk for his signature as soon as possible.”
Caldeira said that to leverage fully the power of small and franchised businesses to lead the economic recovery, these changes to the SBA loan programs will have a huge economic impact . According to a recent IFA analysis, for every incremental $1 billion in lending, franchised businesses can create 40,400 jobs and $4.2 billion in economic output.
“Before the economic crisis, the conventional loan markets ensured that small businesses could find financing, and most borrowers did not think twice about the SBA,” said Caldeira. “Today, however, even thriving businesses can find it difficult to arrange a loan. Existing loan limits do not reflect the current credit crunch, and they deny SBA backing to the small-business borrowers who are most likely able to create the most jobs. Final action by Congress on these provisions would be positive news for small businesses and the economy alike.”
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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 21 million jobs and $2.3 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.
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