To help franchise small businesses and workers, IFA is launching a #SaveSmallBiz Campaign, and is asking the franchise community for help. In a message to IFA members, VP, Political Affairs & Grassroots Advocacy Erica Farage wrote, “As Congress returns before the December holidays and January’s presidential transition, franchise small businesses across the country continue to face rising COVID-19 cases, additional operating restrictions, reduced capacity, and increasing financial burdens.”
Farage said that Congress must put politics aside and act now to save franchise small businesses, workers, and jobs during what will be a difficult winter. “Our industry cannot afford another week without further aid, let alone months. Over 32,000 franchises have closed, eliminating or furloughing more than 1.4 million jobs nationwide. Without additional government assistance, another 36,000 will permanently close in the coming weeks,” she pleads.
The Franchise Action Network is urging the franchise community to contact elected officials by using this link https://p2a.co/LvQtWte and asking Congress to act urgently and pass a relief bill which meets these three principles:
1) All Small Businesses Should Be Equally Eligible for Relief – Regardless of the Name on the Door
While criteria like revenue declines and employee count should be considered, all small businesses that meet those criteria should be equally eligible for relief.
2) Technical Fixes & Improvements to Existing Relief Programs Must be Addressed
Certain technical and policy flaws in relief programs need to be corrected, including ensuring that PPP expenses are tax-deductible, relaxing franchise rules and other SBA lending requirements to ensure that all franchise businesses can apply for capital and providing equal access to sustainable lending and relief measures to better aid communities of color in generating minority wealth creation and entrepreneurship.
3) For Long-Term Success, Relief Should Come Quickly and Include Legal Protections
With the virus on the rise and additional states closing or reducing capacity for businesses right now, speed is critical to success. Because of this, Congress should prioritize proposed relief vehicles – like PPP second draws – that will enable business owners to access capital quickly and easily.