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Congress May Ask Banks to Raise Loan Cap for Small Businesses and Franchisees

Congress will be faced with the decision as to whether or not they will ask banks to raise the current cap on small business loans from $2 million to $5 million.  In a recent speach by President Obama he presented an idea to Congress that would help small businesses and franchisees be able to receive higher loans. 

The request to Congress was sparked by the recent slowing down in entrepreneurs purchasing businesses and franchises because of the difficulty a lot of people have been facing recently when attempting to take out business loans.  Business owners, franchisees and those looking to become a business owners or franchisees are currently only allowed to take out a maximum small business loan of $2 million which often prevents entrepreneurs who are interested in expanding their business, purchasing a franchise or purchasing a business from doing so. 

This request to Congress is being made in hopes that it will generate more business growth and job opportunities.  Franchisees who already own a franchise business will possibly be presented with the opportunity to purchase additional franchise locations. 

When faced with the already tough decision of purchasing a business, purchasing a franchise, or expanding a business you will want to make sure you not only have the necessary funds to move forward by securing a loan, if necessary, but you will also want to make sure you have a knowledgeable business or franchise lawyer to represent you in your transaction.  You will want to make sure that your best interest are being protected and represented during your transaction.  If you need help with your business transaction or with purchasing a franchise contact Charles N. Internicola New York business and franchise lawyer at 718.979.4300.