As federal spending cuts loom on the horizon and sequestration threatens federal programs, including the Small Business Administration's 504 loan program, a new initiative is in place to help small businesses continue to thrive, despite the economic threat to financing through the SBA 504 Loan Program.
On Monday at their Financial Summit in Las Vegas, the International Franchise Association (IFA) announced an initiative in partnership with the National Association of Development Companies (NADCO) to finance franchise real estate, equipment, renovations and remodels, and furniture and fixtures with the SBA 504 Loan Program. A news release announces that they will use the program to fund single and multi-unit new development, as well as transfers, conversions, refranchising, and remodeling.
Steve Caldeira, IFA CEO, stated that, ""The SBA and its partner lending institutions are a critical vehicle to finance the growth plans of franchisors and franchisees that continue to grow at rates that outpace growth of other industries." He continued that "This new initiative will increase the use of the SBA's 504 lending program, finance new franchise establishments and create jobs in the franchising industry in 2013 and beyond."
Beth Solomon, NADCO CEO, also stated that: "While franchisees have long used SBA-guaranteed asset finance programs, franchisors can now deploy these asset finance programs for system-wide, game-changing growth. The 504 industry, through its 270 CDCs in all 50 states, is mobilizing to support franchise growth and create the jobs America needs."
In another statement that can be read here, Beth Solomon says, "The bottom line: Small businesses have earned the distinction as the engine of America’s economy, especially growing small businesses." With the IFA partnering with NADCO to support this new initiative, we are hopeful that through the SBA 504 Loan Program, small businesses will continue to thrive and remain the engine of America's economy.