IFA Supports Legislation To Increase Capital To Franchise Businesses

May 18, 2010 // Franchising.com // WASHINGTON — The International Franchise Association today reaffirmed its support for legislation that addresses the credit crisis facing small franchised businesses, specifically the Small Business Job Creation and Access to Capital Act (H.R. 4302/S. 2869).

"Franchise businesses can play an essential role in helping lead the economic recovery if policymakers give them the tools they need to succeed," said IFA Vice President of Government Relations David French in a letter to the leadership of the House Committee on Financial Services. "We appreciate the work of the Congress and the Obama Administration to make changes to government loan programs that will help more franchise businesses create more jobs on Main Street."

IFA's letter coincides with the committee's hearing today on "Initiatives to Promote Small Business Lending, Jobs and Economic Growth." H.R. 4302 and S. 2869 will increase the maximum loan amounts for the Small Business Administration's 7(a) programs to $5 million and for the 504 program to $5.5 million. It will extend the 90 percent loan guarantee rate through the end of FY2010. Given the extreme difficulty many aspiring entrepreneurs are facing in this economy, this increase will allow more individuals to get off the sidelines and access to the start-up capital they seek.

"We strongly encourage Congress to find solutions that do not worsen our federal budget and rising deficits," French said. "Instead, policies should be enacted that lead to increased lending and less government spending. Based on the experience of franchising, we firmly believe that policies to encourage lending will lead to more sustainable long-term job growth."

French said that according to IFA's recently updated Small Business Lending Matrix and Analysis, for every incremental $1 billion in lending, franchised businesses can create 40,400 jobs and $4.2 billion in economic output. Historical data also demonstrates that during previous economic downturns, franchising has led the economy toward recovery. IFA data shows that between 2001 and 2005, the franchising sector expanded by over 18 percent, adding more than 140,000 new establishments and creating more than 1.2 million new jobs.

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.



comments powered by Disqus

Franchise News Room »

News By Industry »

Featured Opportunities

Minuteman Press International
Minuteman Press is the world's largest & number 1 rated printing & marketing franchise. Our business model features multiple revenue streams,...
ShakeAway is a unique global company with stores popping up all over the world! Get involved in this fun, fast growing and profitable franchise now...
Capriotti's Sandwich Shop
Capriotti's has mastered the art of sandwich making since 1976, achieving over 250 awards & counting. Our fans & franchise community agree,...
REVOLISM Wellness and Weight Loss
Live Well, Lose Weight and Feel Better with REVOLISM
Huddle House
Everyone knows a House is a good investment! Huddle House is a full service restaurant, serving delicious meals, cooked to order...
Share This Page

Subscribe to Franchising.com Express

A Franchise Update Media Production
Franchise Update Media
P.O. Box 20547
San Jose, CA 95160
PH. (408) 402-5681
In Loving Memory Of Timothy Gardner (1987-2014)

Copyright © 2001 - 2018.
All Rights Reserved.