Congressman Kim, Bipartisan Coalition, Call on Senate to Save Millions of Franchise Jobs
Congressman Kim, Bipartisan Coalition, Call on Senate to
Save Millions of Franchise Jobs
WASHINGTON, DC – Today, in a bipartisan letter to Senate leadership, Congressman Andy Kim (NJ-03), Congressman Rodney Davis (IL-13), Congressman Josh Gottheimer (NJ-05), and Congressman Kevin Hern (OK-01), called for bold action to increase small business support in the CARES Act that would help save the jobs of those employed by franchisees, and keep those small businesses open.
The letter cites the, “more than 733,000 franchise establishments, operating in 300 different industries, which support nearly 7.6 million jobs and $674 billion of economic output for the U.S. economy”, as a primary reason for action to be taken now in the Senate-negotiated bill.
“Access to a loan in the amount of 2.5 times their average monthly payroll expenses is not enough for franchisees to keep their doors open,” wrote the bipartisan group to Senate leaders McConnel and Schumer. “As drafted, the CARES Act does not take into consideration the cost of mortgage payments, rent payments, and payments on other debt obligations. When considering the cost of goods, facilities, salary expenses, insurance, and other overheads, a franchisee could foreseeably still be at a negative cash balance following this legislation’s cash infusion, struggling to operate.”
The letter asks that the CARES Act allow franchisees to, “access to a loan size equal to 4 times their average monthly operating expenses, rather than 2.5 times the average monthly payroll expenses.” This would allow franchisees to access as much as $10 million in loans, which can help them survive the current economic impact of the Coronavirus pandemic.
Full text of the letter can be downloaded by clicking here.