IFA Urges Bailout for CIT Group

Grow Your Business, Not Your Inbox

Stay informed and join our daily newsletter now!
Entrepreneur Staff
min read
ifa-cit.jpgThe International Franchise Association joined the National Retail Federation and the American Apparel and Footwear Association on Tuesday in urging the federal government to offer aid to the struggling CIT Group.

In a letter addressed to Secretary of the Treasury Timothy Geithner, IFA President and CEO Matthew Shay pointed out that CIT has been the largest originator of SBA-backed loans to franchisees since 2000 and cited a recent IFA report showing that every $1 billion lent to franchisees results in 34,100 jobs and $3.6 billion of additional economic output.

In addition to a bailout for CIT, Shay's letter recommends that the government seek out other ways to give franchise businesses a boost. His suggestions include "creating a federal program to facilitate the syndication of franchisee loans" and raising the maximum limit for the SBA's 7(a) loans from $2 million to $4 million.

The IFA's efforts seem to have fallen on deaf ears, though--at least as far as CIT is concerned. The Washington Post reports that the company has been advised not to expect government support any time soon, so the slide into bankruptcy seems all but inevitable.

More from Entrepreneur

Get heaping discounts to books you love delivered straight to your inbox. We’ll feature a different book each week and share exclusive deals you won’t find anywhere else.
Jumpstart Your Business. Entrepreneur Insider is your all-access pass to the skills, experts, and network you need to get your business off the ground—or take it to the next level.
Are you paying too much for business insurance? Do you have critical gaps in your coverage? Trust Entrepreneur to help you find out.

Latest on Entrepreneur