The biggest challenge facing the franchise industry’s ability to create jobs and reach its full potential is access to capital. Franchisors want to expand their systems. Franchisees need to make enhancements to their existing stores to keep up with the competition. Many also want to secure credit in order to grow. Without credit, our industry is handcuffed and held hostage — much like the rest of the economy.
In the last year, the IFA has made access to credit our number-one public policy priority. In April, we convened the first-ever Small Business Lending Summit. In May, we launched a Credit Access Roadshow – taking our message to lending events with our anchor partners, the Consumer Bankers Association and the National Association of Government Guaranteed Lenders. As a direct result of the House Small Business Committee staff attending IFA’s Small Business Lending Summit, we were invited in June to testify before the Committee on the damaging effect of financial regulation on community banks and small business borrowers. Read on.