Franchise Association Requests Billions of Dollars in Relief Immediately & Warns of Job Losses & Business Closures
WASHINGTON, MARCH 19 – The International Franchise Association (IFA) today released the following statement regarding H.R. 6201, the Families First Coronavirus Relief Act and next steps for Congress:
“While the bill contains important provisions that benefit small businesses and employees, namely expanded unemployment insurance and increased access to testing, there is more work to be done.
“IFA appreciates the direct engagement from the Administration and the Senate on this issue, but the construction of the bill’s paid leave mandate and refundable tax credit exacerbates the problem for small businesses who already have a significant and immediate cash flow crisis for the next six to eight critical weeks due to government mandated closures and social distancing measures. Industry estimates show hundreds of thousands of jobs in the franchise sector may be lost and tens of thousands of businesses may close if relief is not delivered in the next 90 days.”
“We hope that Congress will address this small business crisis immediately and without partisan bickering. Major actions are needed to ensure businesses can keep employees and continue employer provided benefits, especially health care benefits as people’s livelihoods are at stake.”
“Providing support for American workers and businesses is a goal we all support. Coronavirus relief is too important to American workers and families to get wrong. IFA and the small business community stands ready to work with Congress and the Administration to ensure that America’s small businesses, their employees, and their families can weather this unprecedented time,” said Matt Haller, IFA Senior Vice President of Government Relations and Public Affairs.
On Wednesday, IFA sent a letter to President Trump and congressional leaders outlining its priorities for additional legislation, including the creation of a Small Business Workforce Stabilization Fund, $300 billion in SBA lending authority and relief for Business Interruption Insurance.
According to Frandata, the estimated franchise impact in the four most impacted business lines where franchising is concentrated - hotels, restaurants, personal services, and residential/commercial services – assuming a 90 day shutdown, is below:
Celebrating 60 years of excellence, education, and advocacy, the International Franchise Association is the world's oldest and largest organization representing franchising worldwide. IFA works through its government relations and public policy, media relations and educational programs to protect, enhance and promote franchising and the more than 733,000 franchise establishments that support nearly 8.4 million direct jobs, $787.5 billion of economic output for the U.S. economy and 3 percent of the Gross Domestic Product (GDP). IFA members include franchise companies in over 300 different business format categories, individual franchisees, and companies that support the industry in marketing, law, technology and business development.