It's great that the US Government is trying to address the lack of lending by the banks for small business loans. It's been a major problem, and has hindered our economic growth.
The banks have gone from lending money to anyone that had a pulse, to what's happening now;
They're looking for ways to turn loans down. That is what's happening, folks.
In this Washington Post story, David Cho writes that "administration officials say helping small businesses get credit remains
a top priority. It is a critical component of the strategy to address
the nation's high unemployment. More than half of all U.S. workers are
at companies with fewer than 50 employees. Without access to loans, many
of these firms are laying off workers or shutting their doors
One thing is still missing;
There's absolutely no mention of assistance for those who wish to start their own small businesses-in this case, new franchise businesses. Why isn't this being addressed?
I even asked Matthew Shay, the outgoing CEO of The International Franchise Association, if the IFA was mentioning "start-ups" in it's lobbying efforts. Matt told me, "absolutely." I believe him. (Of course, since I'm not a member of the IFA, and don't pay dues to have Matt lobby for the right things…)
I'll tell you something though. If I was the CEO of a franchise company, and I belonged to the IFA, I'd be hammering on the execs there on why there aren't too many loans available for the folks that are trying to buy my franchises, but can't. I would hope that my dues would be going towards an effort to help me sell new franchises.
Am I being too hard on the IFA?
Do you remember the upbeat franchise outlook from the IFA for 2010?
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