IFA’s President & CEO Steve Caldeira joined BoeFly’s Co- President Mike Rozman on Bloomberg Radio to discuss how the IFA is teaming up with the lending community to better understand the individual issues and to collectively look for opportunities to grow.
BoeFly, an online marketplace that connects business borrowers with lenders, is helping educate businesses on what they need to do to get ready to walk into a bank. “It is a frustrating process to go through to get a business loan, so helping match-up those borrowers with the right lenders is important,” says Rozman. “Along the way, franchisors wanted a solution that would help all their franchises at one time, so BoeFly is helping deliver specific needs that will help financially.”
Although the new lending index that IFA released at its Small Business Lending Summit last week shows lending is stronger today than it was a year ago, Steve Caldeira reports that, “we still fell short of our 2.5 percent growth last year and because of that 82,000 jobs were not created.” The ongoing uncertainty in the economy has franchisees and investors sitting on the sidelines. “People are waiting to see what happens with tax reform, the election and the healthcare bill,” says Caldeira. “That is why it was critical for the IFA to bring 300 lenders, borrowers and regulators together to spring credit access to franchises.”
The index will continue to give a good read on how strong the industry is doing, which will allow a better understanding of what is working. “Having consistent information that gives a historical perspective using data from BoeFly as well as the SBA is the first step,” says Rozman. Yet franchising continues to grow, and for every million dollars of lending to franchising 34 new jobs are created. “We had to do something to loosen commercial credit,” Caldeira explains. “Creating relationships with the lending community is the first step to understanding the challenges that we all face in this economy.”
Click here to listen to the full interview.