April 2, 2013
/PRNewswire-USNewswire/ -- The National Association of Development Companies (NADCO) will launch a Northeast franchise lending initiative Wednesday at the first Franchise Lending Spotlight Conference in
, M.A. The campaign will feature a new loan exchange that will match borrowers with Small Business Administration (SBA) loans through their network of nearly 270 Certified Development Companies (CDCs), authorized by the SBA to facilitate U.S. government guaranteed small business loans.
"This new initiative will increase the use of the SBA's loan programs, finance new franchise establishments and create jobs in the franchising industry in 2013 and beyond,"
, President and CEO of NADCO.
"The SBA and the nation's nearly 270 CDCs are a critical vehicle to finance the growth plans of franchisors and franchisees, one of the world's most successful small business models."
Kiddie Academy, Checkers, Great Clips, Martinizing Dry Cleaning, Uno Chicago Grill and Bin There Dump That
are among featured brands who will meet with leaders of
Bay Colony Development Corp
., a regional CDC whose purpose is to stimulate economic development through the creation and preservation of jobs by providing healthy companies with fixed asset financing at affordable rates and reasonable terms. Bay Colony, founded in 1981, has funded loans in excess of
to well over 700 growing businesses throughout
, representing nearly
in total project financing. In addition to providing Section 504 Loan Program financing, Bay Colony works with lending institutions and the SBA to assist small businesses with loan guarantees under the Section 7(a) Guaranteed Loan Program.
"While franchisees have long used SBA-guaranteed finance programs, franchisors can now deploy these asset finance programs for system-wide, game-changing growth. The CDC industry is mobilizing to support franchise growth and create the jobs America needs."
Currently, there is legislation pending in Congress that could extend SBA's debt refinancing for small businesses. This initiative helped 2,700 businesses refinance
locked in their real estate and assets during a trial period in 2012, allowing them to save up to
per month for job creation and retention. The bipartisan legislation, known as the CREED Act (S. 289/H.R. 1240), is co-sponsored by Sen.
(D-MA) and was introduced in the Senate by Sen.
(D-LA), Chairman of the Senate Small Business Committee. Other co-sponsors include Sen.
(R-GA) and Sen.
(D-MO). House co-sponsors include Rep.
(D-MA) and Rep.
"Every member of Congress should be supporting this zero-cost capital access initiative for small businesses,"
Solomon concluded. "
It's not Congress's money, it belongs to the small businesses. This is a no-brainer for Republicans and Democrats alike to help small businesses create and sustain the jobs America needs."
ABOUT THE CREED ACT
The Commercial Real Estate and Economic Development (CREED) Act, a zero-cost deft refinance program administered by the Small Business Administration, was originally enacted as part of the Small Business Jobs Act of 2010, enabling over 2,700 businesses to refinance nearly
in old, expensive debt during a short trial period. During that time, nearly 2,700 business were able to unleash capital locked in their real estate that was reinvested into their businesses to create and sustain jobs. The measure literally saved thousands of businesses in communities across the country during the recession, helping them accelerate the economic recovery.
On the Senate side, Senator
Mary L. Landrieu
(D-LA), Chair of the Senate Committee on Small Business and Entrepreneurship, and Senator
(D-N.H.), a senior member of the Committee introduced a five-year extension could offer capital access to over 250,000 additional businesses across the country, saving them up to
per month. Sen.
(R-GA) is a co-sponsor.
(D-CA) has introduced the House version of the CREED Act, along with Congressman
ABOUT THE SBA's 504 LOAN INITIATIVE
The 504 loan initiative is a self-funded long-term financing tool at no cost to taxpayers providing small businesses with long-term, fixed-rate loans with down payments as low as 10%. Certified Development Companies (CDC) work with the SBA and private sector lenders to provide financing to small businesses under the 504 loan program.