IFA wants clarification on agency's understanding of franchisor relationship

The association representing franchise businesses wants to make sure its industry has an equal shot at loans provided by the U.S. Small Business Administration.

The International Franchise Association recently submitted comments to SBA seeking to clarify the agency's definition of the relationship between franchisors and franchisees for the purposes of determining loan eligibility for franchise small businesses. The association fears confusion about that relationship could make some businesses ineligible for loans.

"Existing and prospective franchisees deserve equal access to the SBA resources available to other small business owners, particularly as the franchise industry has continued to grow at a higher rate than non-franchised businesses each of the last five years following the recession," IFA CEO Steve Caldeira said.

In 2014 alone, SBA lending programs were used to help finance nearly 30,000 new franchise units and guaranteed an estimated $6 billion in loans to franchisees, according to IFA.

"IFA hopes to continue our collaborative and successful relationship with the SBA to help America's small businesses flourish," Caldeira said.