IFA Statement on Federal Government Shutdown

October 01, 2025 // Franchising.com // WASHINGTON – IFA President and CEO Matt Haller issued the following statement urging Congress to come an agreement to reopen the federal government, which shut down as of midnight, Oct. 1, 2025:

“Federal government shutdowns are helpful to no one, and we encourage members of Congress to vote swiftly to resume government funding. Small businesses rely on certainty to operate, and without a properly functioning government, essential services to current and prospective franchise owners and their employees are slowed. Franchisees, which constitute nearly 20 percent of Small Business Administration-backed loans, will now face delays in essential access to capital and slowdowns in federal contract business and permit approval until there is a federal spending resolution. IFA calls on Congress to act expeditiously to reopen the federal government, rather than leaving hardworking Americans hanging in the balance."

During a federal government shutdown, franchise businesses would face a number of direct and indirect impacts. One of the most significant direct impacts for franchises would be Small Business Administration (SBA) loans, as approximately twenty percent of all SBA loans go to franchises, with more than $15 million in SBA lending flowing to franchise businesses every day. While the government is shut down, access to this essential source of capital will be unavailable, and access to financing delayed for an undetermined amount of time. Additionally, franchise businesses will face delays or suspensions of federal inspections, permits, and regulatory approvals, interruptions in other essential services, and an overall reduction in consumer demand.

About the International Franchise Association:

Celebrating over 60 years of excellence, education, and advocacy, the International Franchise Association (IFA) 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 approximately 831,000 franchise establishments that support nearly 8.8 million direct jobs, $896.9 billion of economic output for the U.S. economy, and almost 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.

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Katherine Knight Patterson
[email protected]
(202) 662-0783