The IFA/BoeFly Franchise Lending Index drop seen as a direct result of the Federal Government Shutdown
Dec. 3, 2013 – NEW YORK — Lending to franchise businesses dropped by 13.34 percent from September to October this year, according to the monthly Franchise Lending Index from the International Franchise Association (IFA) and BoeFly, the premier online marketplace connecting small business borrowers with lenders and a strategic ally of IFA to expand credit access within the franchise community.
The Index also found that year-over-year loan volume dropped by 1.13 percent from October 2012 to October 2013 settling to 94.09. The Index was last below the 100 point mark in August of this year
The IFA/BoeFly Franchise Lending Index (http://www.boefly.com/
“This striking drop in franchise lending – the largest fall since January of 2011 – is a direct result of the federal government shutdown,” said Mike Rozman, co-president of BoeFly. “We expected a meaningful drop in volume, particularly after a run-up in volume in September as SBA lenders sought approvals prior to the shutdown, but a volume drop of 13.34 in the Index reflects a serious blow to the market. Based upon positive growth leading into the shutdown, I expect, and certainly hope, that this fall is temporary.”
“Franchise businesses continue to outperform the economy, however the ongoing partisan gridlock associated with the government shutdown and debt ceiling debate, the lack of a long-term growth agenda and the continued anti-business regulatory environment is holding back what we believe would otherwise be a more robust recovery for the franchise and small business community,” said IFA President & CEO Steve Caldeira.
About the IFA/BoeFly Franchise Lending Index
The IFA/BoeFly Franchise Lending Index is created from a monthly analysis and integration of both proprietary data from BoeFly’s marketplace and franchise loan data from the Small Business Administration (SBA). BoeFly’s data is collected in real-time based on the activity of more than 3,600 community, regional and national lenders who use BoeFly to most efficiently source franchise borrowers. The SBA data used in the analysis dates back to 2002 and covers more than $20 billion in franchise loans. The Index, a time series index set to a value of 100 in January 2002, creates an insightful, standard measure of franchise credit access. The Index is an initiative of the strategic alliance between the IFA and BoeFly announced in 2012.
BoeFly makes it easier to obtain small business loans (http://www.boefly.com/
Borrowers build a complete decision-ready loan request online using BoeFly’s exclusive “SmartForm”
BoeFly, now a strategic ally of the International Franchise Association to expand credit access within the franchise community (http://www.boefly.com/
BoeFly’s Affiliate Solution is the financing exchange chosen by the Association of Small Business Development Centers, representing approximately 1,000 centers nationwide, which are funded in part by the U.S. Small Business Administration, to serve small businesses, and Franchise Gator, the leading site for information on franchise opportunities.
BoeFly was founded by small business owners and small business lending experts with extensive small business lending experience. The company is privately-held and is based in New York City.http://www.boefly.com.
About the International Franchise Association
The International Franchise Association is the world’s oldest and largest organization representing franchising worldwide. Celebrating over 50 years of excellence, education and advocacy, IFA works through its government relations and public policy, media relations and educational programs to protect, enhance and promote franchising. Through its media awareness campaign highlighting the theme, Franchising:
Originally posted on prlog.org