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We blogged this week about IFA chaimwoman Dina Dwyer-Owens’ recent visit to Capital Hill and hoped that the Government would seriously take on board the needs of the small business community. Well, it looks like President Obama has taken notice.

The President yesterday told the small business community that “America is standing behind small business”, as he announced a range of measures aimed to help small businesses and franchises. Joined by SBA administrator Karen Mills and Treasury boss Tim Geithner at the home base of Metropolitan Archives, President Obama announced a number of initiatives aimed to spur lending and revive the small business sector. Watch his speech here:

President Obama’s plans include:

• Letting community-based banks (ie those with assets under a $1billion borrow money at a lower rates via the TARP program)
• A rise in the SBA loan caps from $2million to $5million.
• Community groups that issue loans in poorer areas can borrow relief loans at 2 per cent for 8 years.

IFA president Matthew Shay yesterday welcomed the President’s plan, saying that Mr Obama directly taken on board an IFA proposal.

“We thank President Obama for his support to enhance the SBA’s loan program,” said IFA President & CEO Matthew Shay. “We urge Congress to take the next step and pass legislation to increase the loan limits and make other important changes to the SBA loan program.”

It’s exciting to see the Government finally responding to needs to small business owners, but we hope this will not be the end of its support. What more do you think the Government can do to help franchisees and small business owners?

Congratulations are in order to Matthew Shay, the IFA CEO who has been named CEO of the Year by CEO Update, a very-well respected Washington periodical.

“A vocal champion for the role that small businesses play in the economy, he has been calling on the government to make small business loans easier to obtain,” CEO Update said.

Some other achievements that Shay has overseen in his time as CEO include the launch of an association public awareness campaign as well as Franchise Congress, an enhanced grassroots initiative. He has also helped grow the association’s revenue 65 percent in the past five years and created a new leadership conference for top leaders in the franchise industry.

We’ve certainly seen Shay at his most active during this current economic crisis, whether it means lobbying the Treasury for better for funding for the small-business sector or trying to get the Obama administration to save CIT.

At such a difficult economic moment, it’s assuring to know that the man at the top of the IFA is doing his job so effectively. Congratulations again.

In this week’s Franchise Update, we are bringing you news on our new Automotive Franchise Industry report, as well as news on Marble Slab Creamery’s fun summer ice cream program.

Click here to download this week’s Franchise Update, or watch in the player below:

Franchise Direct have published an industry report on the automotive franchise industry. The report is based on research carried out by Franchise Direct on a number of UFOC documents from some of the US’s top franchises.

Marble Slab Creamery have launched a fun program to celebrate the summer! The top ice cream franchise has teamed up with contestants from Top Chefs, Season Five to bring their customers a range of new sundaes for the summer season.

Thanks for watching!

The automotive industry is cloaked in uncertainty, but according to the latest exclusive franchise study by Franchise Direct, there are many reasons to believe that automotive franchises will continue to thrive. Franchise Direct recently analyzed the Franchise Disclosure Documents (FDD’s) of 30 franchises and found a buoyant franchise sector in the middle of a stuttering industry.

The endemic problems in America’s car industry have been well-documented. But Franchise Direct has found that the sharp decline of automotive industry, coinciding with America’s worst economic downturn since the Great Depression has actually created some exciting opportunities for aftermarket and car rental and sales franchises.

Part of the resurgence of automotive franchises is based on the fact that Americans are simply not buying cars at the moment. According to the Franchise Direct automotive franchise study, the projected new car sales for this year are 9.7 million units, a 40% decline since 2007. But Americans are reliant as ever on the automobile. The bottom line is that as people hold onto their cars longer, they are becoming more dependent on services provided by automotive franchises.

Obviously, aftermarket automotive franchises are best positioned to succeed, as consumers seek maintenance and repairs with greater urgency. Used car and rental franchises will also enjoy the benefits of this new reluctance to splurge on new automobiles.

Interestingly, the advance of technology in automobiles has created a new niche market for aftermarket franchises. Drivers have embraced cars with high-tech engine control, microprocessors and complicated safety and communications systems. American drivers are also demanding more eco-friendly cars that lower carbon emissions. As these technologies become more wide-spread, a new market will open for aftermarket franchises, as drivers will no longer be able to service their own careers.

The great irony is that the global recession and the collapse of Detroit’s auto industry has opened the door for the recent success of automotive franchises. America’s love affair with the automobile is undiminished, but American’s attitude towards car buying has radically changed. Franchise Direct’s research shows that consumers are turning towards automotive franchises to keep their cars on the road. With the government’s stimulus plan providing economic optimism, Franchise Direct feels that this is an excellent time to consider franchise opportunities in the automotive sector.

In this week’s Franchise Update we are wishing Little Caesars a Happy Birthday, as well as reporting on the success of a Minuteman Press franchisee.

Click here to download this week’s Franchise Update, or watch in the player below:

Little Caesars recently celebrated their 50th Birthday. The food franchise was originally started by husband and wife duo Michael and Marian Ilitch and today is one of the largest pizza restaurant franchises in the US.

Joanne Miner has been announced as one of Broward County’s 100 outstanding women. Ms Miner is a Minuteman Press franchisee and is a celebrated businesswoman in Broward County.

Thanks for watching.