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The proposed rule change would immediately devalue many small businesses. (After this article was prepared, IFA met with the U.S. Senate Small Business Committee and SBA policy staff to craft a compromise on goodwill financing. SBA indicated it will consider an alternative policy from IFA.)
Changes announced to the U.S. Small Business Administration policy guidance on the financing of goodwill do little to resolve the concerns of the franchise business industry, and only add more confusion and uncertainty during a time of economic crisis, the International Franchise Association said recently.
Responding to the announcement by the SBA that it will consider loans that are larger than the previously announced cap of $250,000 on a case by case, IFA said this stop-gap measure falls short of...