Buy A Franchise – HOUSE Approves SBA Loan Limit Increase

September 24th, 2010

(Buy A Franchise, Seattle Franchise, Bellevue Franchise)

 

HOUSE APPROVES International Franchise Associations SUPPORTED SBA LOAN LIMIT INCREASE

 International Franchise Association Members Join House Leaders for News Conference after Bill’s Passage.

 The International Franchise Association today applauded the U.S. House of Representatives for passing the Small Business Jobs and Credit Act, which includes provisions that will help increase credit access for Franchise businesses.  This is helpful to not only the Bellevue Franchises and Seattle Franchises, but Franchises located all across the country. 

“The passage of the Small Business Jobs and Credit Act by the House is a great win for Franchise businesses that have lobbied intensely for these changes for nearly two years,” said IFA President and CEO Stephen J. Caldeira.  “We commend the House for their action today, and strongly urge the President to quickly sign the bill into law so that Franchise owners can access additional capital to start new businesses and create jobs in communities across the country.”

The bill, passed by the Senate last week, increases the Small Business Administration’s (SBA) loan limit from $2 million to $5 million and extends the 90 percent loan guarantee rate through the end of 2010, which will help to encourage banks to participate in the SBA program. IFA analysis shows that with the loan limit increase, 450,000 to 600,000 new jobs could be created by Franchise businesses.   

Two International Franchise Association Franchisee members joined House Speaker Nancy Pelosi and other members  of the House during a press event after passage of the bill.  Mariana Huberman and Ram Javia represented the franchise industry as the House celebrated the passage of the bill. Huberman owns The UPS Store located in Washington, D.C. and has struggled to access the financing necessary to open a second store.  Javia, who was recently named an International Franchise Association Franchisee of the Year, owns three Dunkin’ Donuts restaurants in the Baltimore, Md. area and sits on the Brand Advisory Council for Dunkin’ Brands.

Caldeira credited the International Franchise Association’s aggressive lobbying activities by its small business members for helping to ensure that the loan limit increase and extension of the 90 percent guarantee and borrower fee reductions were included in the bill.  Through congressional testimony at multiple hearings over the past 18 months, intensive media outreach and paid advertising, along with interaction with White House, Treasury, SBA and Federal Reserve officials, the International Franchise Association has worked relentlessly to explain that if more capital was available, franchise businesses could create hundreds of thousands of new jobs.  IFA studies show that for every $1 billion in lending, franchise businesses can create over 40,000 jobs and $4.2 billion in economic output. 

Caldeira said the passage of the bill coincides with the latest advertisement in International Franchise Association’s public awareness campaign now running in Washington, D.C. area publications. The new ad features Pat Luers of Centerville, Ohio, who opened his first BrightStar Franchise last year and created 40 new jobs in his community.  Luers would like to open more locations of the BrightStar Franchise, however he is having trouble accessing additional credit to make that happen.  The advertisement explains that with access to credit and sound regulatory policies, franchise businesses like Luers’ can be an important part of the country’s economic recovery.

 (Buy A Franchise, Seattle Franchise, Bellevue Franchise)

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