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IFA/BoeFly Franchise Lending Index


A monthly analysis of proprietary data from BoeFly's small business loan marketplace and franchise loan data from the Small Business Administration (SBA).

The IFA/BoeFly Franchise Lending Index, normalized to a value of 100 in January 2002, is a standard measure of franchise credit access (volume of loans and lender interest in new loans) intended to show relative trends. A rise in the Index in one period versus a previous period indicates expanding access to credit for franchise borrowers whereas a drop in the Index from one period versus a previous period indicates contracting access to credit for franchise borrowers.

Current Insights

  • Lending to franchise businesses dropped by 13.34 percent from September to October this year. 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.
  • "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 Index

In 2012 the International Franchise Association and BoeFly established a Strategic Alliance to expand credit and create jobs. As part of the Alliance, an Index was created to give an insightful, standard measure of credit access for franchise loans.

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 on the activity of more than 5,000 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 of franchise loans. The Index is a time series index set to a value of 100 in January 2002. The Index is correlated with GDP and Employment, lagging both indicators. The Index is an initiative of the strategic alliance between the IFA and BoeFly announced in 2012.

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The IFA/BoeFly Franchise Lending Index Percentage Change vs. Year Prior presents the rate of change from a given month to the preceding year. For instance, the Index in October 2013 is 1.13 percent lower than October 2012.

Learn about the IFA/BoeFly Alliance.

Contact BoeFly for more information or to access more detailed data-driven insights about franchise finance. 800-277-3158

Media Inquiries:
Jessica Sarter
(646) 755-7433