SBA Extends Authority to Help Franchises

December 22nd, 2010

(Buy A Franchise Unlimited, Seattle Franchise, Bellevue Franchise)

EXTENSION OF SBA AUTHORITY CRITICAL TO FRANCHISE SMALL BUSINESSES

WASHINGTON, D.C., Dec. 22, 2010—Following passage of the continuing resolution to extend government funding through March 4, the International Franchise Association (IFA) today hailed the decision by lawmakers to include a provision extending the Small Business Administration’s authority for key lending programs critical to franchise small businesses still struggling to recover from the recession, which were scheduled to expire on December 31, 2010.

“Congressional leaders have heard loud and clear our message that the franchise small business industry will be unable to grow and create jobs without extending the SBA’s lending authority,” said International Franchise Association President & CEO Steve Caldeira.

Earlier this year, President Obama signed into law the Small Business Jobs Act to permanently increase the SBA’s 7(a) loan limits from $2 million to $5 million. That legislation, which was one of International Franchise Associations top legislative priorities, only temporarily extended the 90-percent loan guarantee rate and borrower fee reduction through the end of this year.

“This extension is a critical short-term solution that will provide much-needed access to credit for franchise small businesses looking to expand,” said Caldeira.

The CR includes an extension of SBA’s authority to grant fee waivers to 7(a) and 504 small business applicants and to offer higher guarantees (up to 90 percent) on 7(a) loans through March 4, 2011, or until funds are expended, whichever occurs first.

 (Buy A Franchise Unlimited, Seattle Franchise, Bellevue Franchise)

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