FOR IMMEDIATE RELEASE
Contact:
Alisa Harrison, 202-628-8000
Matthew Haller, 202-662-0770
aharrison@franchise.org
mhaller@franchise.org
@franchising411
IFA SAYS SBA LENDING KEY TO FRANCHISE BUSINESS GROWTH
WASHINGTON, March 28,2012 – In a statement submitted to Senate Small Business & Entrepreneurship Committee Chairman Mary Landrieu (D-La), the International Franchise Association today said congressional support of SBA loan programs put forth in the administration’s fiscal year 2013 budget proposal will be a key factor in the franchise industry recovering from the recent economic downturn.
“The SBA was a lifeline to the franchise industry during the recession as commercial lending became more difficult to obtain for aspiring and existing franchisees,” said IFA President & CEO Steve Caldeira. “While the franchise industry is poised for modest growth in 2012, the recovery will be contingent in large part upon credit availability and a regulatory environment that enables, rather stifles job creation and economic growth. Given the reliance on small business lending by the franchise industry, we urge Congress and the administration to continue to ensure the SBA’s 7(a) and 504 loan programs do not increase costs on loan program participants and remain fully funded through the next fiscal year.”
SBA has supported approximately $42 billion in loans to small business owners between its 7(a) and 504 loan programs in the last two years. The Administration’s budget request provides $349 million in continued credit subsidy for SBA’s 7(a) and 504 loan programs. This funding is sufficient to support $16 billion in 7(a) loans and $6 billion in 504 loans. SBA lending to franchise business represents approximately 7 percent of total SBA loan volume and 10 percent of total loan dollars.
“Given the franchise industry’s increasing reliance on SBA lending to grow, IFA strongly supports this portion of the Administration’s budget request for FY 2013,” said Caldeira.
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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 over 50 years of excellence, education and advocacy, IFA works through its government relations and public policy, media relations and educational programs to protect, enhance and promote franchising. Through its media awareness campaign highlighting the theme, Franchising: Building Local Businesses, One Opportunity at a Time, IFA promotes the economic impact of the more than 825,000 franchise establishments, which support nearly 18 million jobs and $2.1 trillion of economic output for the U.S. economy. IFA members include franchise companies in over 300 different business format categories, individual franchisees and companies that support the industry in marketing, law and business development.