Washington, D.C. – The International Franchise Association is pleased to welcome new guidelines and expanded benefits for franchises and small businesses under the U.S. Small Business Administration’s COVID-19 Economic Injury Disaster Loan (EIDL) program, which provides economic relief to small businesses and nonprofit organizations that are currently experiencing a temporary loss of revenue amid the pandemic. These new changes will be made with the goal of broadening and accelerating loan approvals.
Specifically, the latest COVID-19 EIDL program guidelines, released on September 8, 2021, include two major wins for franchises and small businesses:
- The individual loan cap for small businesses has been increased by 300%, from $500,000 to $2 million.
- The use of funds is extended beyond working capital needs and may be use for most debt payments.
“We welcome the expanded provisions included in the latest rules on the Economic Injury Disaster Loan (EIDL) program and thank the U.S. Small Business Administration for their leadership and dedication to connecting small business franchise owners to the benefits they urgently need,” said Matt Haller, President and CEO of the IFA. “The SBA’s intent is to ensure brand-specific franchises can benefit from the program. We will always advocate for the needs of small business owners still financially recovering from the COVID-19 pandemic and look forward to working with the U.S. SBA on future relief projects.”
On August 24 the International Franchise Association (IFA), in partnership with five other industry trade associations representing expansive segments of the American hospitality industry, issued a joint letter to U.S. Small Business Administration (SBA) Administrator Isabella Guzman urging for the swift adoption of these proposed improvements for the new COVID-19 Economic Injury Disaster Loan (EIDL) program.
The letter stressed the importance of increasing the maximum EIDL program loan size to $2 million and waiving franchise affiliation rules. In an earlier call with U.S. SBA Associate Administrator of Field Operations, Julie Verratti, IFA additionally requested the deferred payments to be extended from 18 to 24 months and the creation of a streamlined application process that will ensure small business franchises from critically affected industries will have greater flexibility when applying for loans.
Small business owners in all U.S. states, Washington D.C., and territories are eligible to apply to benefit from the COVID-19 EIDL program. More information on the new EIDL program rules and guidelines is available on the U.S. Small Business Administration website.
Matt Haller is available for further comment. For additional information or to arrange for an interview, please contact firstname.lastname@example.org.
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 7.6 million direct jobs, $674.3 billion of economic output for the U.S. economy, and 2.5 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.