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A New Source Of Franchise Funding

Yesterday we blogged about a new IFA study which shows that banks are failing to lend to thousands of eager and qualified franchisees. We wondered where alternative sources of funding might come from, and we’re pleased to have learned about a positive new venture.


Franchise America Finance is a program launched last year that “is working with about a dozen franchises system with a designated $200 million for 2011-2012”, according CEO Ron Feldman, who was recently interviewed for, a South Florida news resource. Feldman describes Franchise America Finance as “the broadest and most intense group since the credit crisis happened”, who added the project includes synergy from banks, creditors, and the Small Business Association.


Feldman’s group is currently working with about 30 franchises. The story speaks with a number of franchisees in the South Florida region – including a UPS Store owner – who are only delighted to receive monetary assistance from Franchise American Finance.


The Bancorp Bank is one of the lenders who signed on with Franchise American Finance. They're also glad to have entered the franchise market:

"The Bancorp Bank is very excited to enter the national franchise lending arena. We are focused on lending to only the best of the best in franchising, while helping the economy by stimulating job creation through a proven business model,” told Diane Gallion, senior vice president of The Bancorp Bank, told


It’s fantastic to see this level of trust and investment in franchising. We’re confident these franchises will be able to pay back that investment, and then some.

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