An expanded coalition of trade groups representing the financial services and small business communities today announced an expanded private-sector partnership to strengthen small business lending and spur job creation at IFA’s 2nd annual Small Business Lending Summit.
The groups, including the Consumer Bankers Association, Financial Services Roundtable and the National Association of Government Guaranteed Lenders, cited regulations as a key factor impacting their ability to make loans and access capital.
The groups called on policymakers to hear about the challenges small businesses and lenders are facing in the current economic and regulatory environment. Speaking at the summit, SBA Administrator Karen Mills praised the IFA for its support of SBA lending programs, reporting the SBA has guaranteed $5.3 billion in loans to 5,200 franchisees during her tenure. House Majority Whip Kevin McCarthy said the rulemaking from the Dodd-Frank financial reform law needed to be slowed down in order to free up capital for small business loans.
Some of the media coverage of the Small Business Lending Summit is below:
- FOX Business: What’s Driving the Franchise Lending Shortfall
- CNBC Squawk Box: Lending Shortfall Could Cost Thousands of Jobs
- The Wall Street Journal: Small Business Owners, Banks, Blame Washington for Credit Woes
- CNBC: Once Seen as Risky, Banks Rethink Franchise Loans
- Entrepreneur: SBA Chief Karen Mills on the Small Business Lending Comeback
- Entrepreneur: Small Business Lending: Getting Better, Still not Great
- QSRWeb: Franchise Lending on a Steady Upswing
- The Street: 3 Things You Should Know About Small Business: April 17
At the Summit, IFA released a new report that shows a bank lending shortfall could cost the franchise industry 94,000 jobs. Jon Luther, IFA Chairman and Chairman of the Board for Dunkin’ Brands and Arby’s International, joined CNBC’s Squawk Box and Fox Business to discuss how the IFA is helping the small business community recover from the lending crisis. ”Franchises have a very high success rate and everyone coming together at the summit aides the world of franchising,” Luther says. There is a high demand for franchising because the formula for franchising is a workable formula that has been proven and tested and there is a high success rate when opening a franchise store Read more.
IFA also announced two new strategic partnerships at the Summit. An IFA/BoeFly monthly Franchise Lending Matrix was released, showing franchise lending improving steadily for the last 12 months. Through its alliance with Guidant Financial, IFA and Guidant will jointly develop and conduct educational programs focused on credit access for franchise businesses.
Posted by Matt Haller, IFA Sr. Director of Communications