According to the International Franchise Association, a $3.4 billion shortfall in lending to franchise businesses in 2010 will result in 134,000 jobs not created and $13.9 billion in economic output lost.
"Our data shows that while there will be sufficient capital for franchise development in 2010, banks' continued risk aversion is limiting their willingness to lend," said IFA President & CEO Matthew Shay. "A slow recovery with limited job growth underscores the importance of protecting and encouraging lending to small businesses, which account for 60 percent of all U.S. jobs. Immediately passing enhancements to government lending programs can shore up the $3.4 billion shortfall in lending. New franchise businesses can create much needed jobs - which will speed the U.S. economic recovery."
The updated version of Small Business Lending Matrix and Analysis prepared for the IFA Educational Foundation by FRANdata, demonstrates the impact of the continuing credit crisis on the franchising sectors' ability to recover from the recession, to develop new franchise units, and in doing so, create more jobs for the U.S. economy. Shay said that the Lending report and a new IFA Business Leader Survey are key components of the IFA 2010 Economic Outlook for Franchise Business that will predict the outlook for total jobs, units and economic output across 10 franchise business format sectors. The 2010 Outlook is scheduled for release mid-December.
"Our data shows that while there will be sufficient capital for franchise development in 2010, banks' continued risk aversion is limiting their willingness to lend," said IFA President & CEO Matthew Shay. "A slow recovery with limited job growth underscores the importance of protecting and encouraging lending to small businesses, which account for 60 percent of all U.S. jobs. Immediately passing enhancements to government lending programs can shore up the $3.4 billion shortfall in lending. New franchise businesses can create much needed jobs - which will speed the U.S. economic recovery."
The updated version of Small Business Lending Matrix and Analysis prepared for the IFA Educational Foundation by FRANdata, demonstrates the impact of the continuing credit crisis on the franchising sectors' ability to recover from the recession, to develop new franchise units, and in doing so, create more jobs for the U.S. economy. Shay said that the Lending report and a new IFA Business Leader Survey are key components of the IFA 2010 Economic Outlook for Franchise Business that will predict the outlook for total jobs, units and economic output across 10 franchise business format sectors. The 2010 Outlook is scheduled for release mid-December.
That is the problem with all of this. It is a domino effect. People have great ideas but can’t complete the steps because of the economy.
Where did all the bailout money go? Why are the banks not lending the money? Obama was supposed to fix the banking and lending issues, but he didn’t. Our taxes are going up and our trillion dollars is gone.
I say we elect Don D, the author of this article, to office. Let’s face it, a moldy peach could do a better job.