IFA encourages adoption of amendment in small business bill

Posted on July 20, 2010 by Franchise Gator Admin

When it comes to funding franchises, the International Franchise Association is calling on members of Congress to take action.

IFA vice president of government relations David French recently wrote a letter to members of the U.S. Senate asking them to include an amendment to the Small Business Lending Fund Act. The amendment, he said, would make it easier for potential franchisees to get loans from the Small Business Administration.


"Nearly half of IFA members, who operate across more than 90 industries that create 21 million jobs and generate $2.3 trillion in economic activity, indicated that access to capital is the most pressing issue they face in 2010," French wrote. "Updating and improving the SBA loan programs so that more franchise business owners can obtain the necessary start-up capital will create jobs and help lead our economy on a road to recovery."

The proposed amendment, offered by Senators Max Baucus and Mary Landrieu, would change the amount that businesses are allowed to borrow under SBA programs. The amendment would raise the ceiling on the maximum amount a business could borrow to $5.5 million under the SBA's 504 program and $5 million under the SBA's 7(a) program.

The IFA made political headlines in recent weeks when the organization came out in favor of the proposed Financial Stability Act. The association said the act would help get rid of fees and would improve conditions for franchisees around the country.