Quoted in Wall Street Journal online today!

Here is the link!

http://online.wsj.com/article/SB125348578905126173.html

Capitol Hill

What a week! 4 days in the nation's capital, lobbying with lawmakers, enjoying friendships (old and new), and smoking some great cigars. The IFA staff did a great job with the program, and the speakers. I was drinking George Will's Kool Aid. Logic and pragmatism should prevail!

Here's Where I think they are on our issues:
Card Check - There is something brewing, perhaps a compromise. Whatever it is, it won't address the fact that unions will not help small business.

Health Care Reform - They are over-complicating it. Why can't we all just join their plan? Why can't insurance companies write across state lines? Why can't plans be portable? No legislator could answer those questions for me.

Capital Access - They all want to hear more about our ideas to get lending started. They all acknowledge that banks are NOT lending to small business. Let's keep the pressure on! Full court press!

Then back to home office, and 2 days of Retrotax! Al was in and we made 4 presentations, and got 4 clients! Tax credits RULE!

Happy and Healthy New Year to all of my fellow Jewish friends out there!

Georgia on My Mind

Just spent almost 3 days in Atlanta, and I am amazed at how the folks in this town really get it. The franchise community is tight, and everybody seems to cooperate in sharing best practices. The only thing that makes me wonder about their judgment is that they asked someone like me to speak!

Thanks to all of those who met with me, and I look forward to creating some cutting edge franchise finance programs for all of you!

The Fall Season Begins

This morning, I flew to Atlanta to meet with clients and speak at the FBN meeting tomorrow. This trip is the beginning of a very busy travel season for me and the whole Siegel Team. In the next few months we will be presenting/speaking at many events. Here is a taste of the schedule:

IFA Public Affairs Conference 9/14-15 Wash DC
Franchise Update Leadership & Development 9/23-25 Chicago
IFA Super Session/ West Coast Franchise Expo 9/30-10/4 LA
Murphy Business Brokers Conference 10/20-24 Clearwater, FL
Franchise Times Restaurant Finance Show 11/7-11 Vegas baby!
Driven Brands Joint Convention 11/17-22 Punta Cana
IBBA Fall Conference 11/16-21 Reno

Bernie is busy re-writing the IBBA course on SBA finance with the revised guidance, and I am honing my powerpoint on lending and legislative issues.

Please find us at these conferences should you choose to attend.

Here is a link to a very interesting story on the "recovery" and consumer spending...
http://www.msnbc.msn.com/id/32737999/ns/business-stocks_and_economy

GREAT NEWS FROM WASHINGTON DC!

Twitter: RonaldFeldman

On September 2, 2009, the Small Business Administration announced a major revision to the Standard Operating Procedure ("SOP"), revising their prior guidance relative to the financing of goodwill in re-sale transactions. They effectively removed the previously enacted (March 1, 2009) hard "cap" on goodwill financing that was set at $250,000 or 50% of the loan amount, whichever was lower. This severely hampered the franchise resale market, hamstringing the ability for franchisees to sell their units to other franchisees or for franchisors to sell corporate units to new franchisees.

Highlights of the new guidance, announced yesterday and effective on October 1, 2009 provide for the following:

If the intangible amount is under $500,000, lenders may finance 100% of goodwill without restriction.

If the intangible amount is greater than $500,000, lenders may finance 100% of goodwill, provided that the purchaser injects 25% or more into the transaction as equity. This may include standby seller financing (2 year minimum) as a portion of the equity injection.

Additionally, language forcing lenders to explore seller financing on all transactions was stricken from the document. Lenders now have the flexibility to determine if seller financing is appropriate on a transaction by transaction basis.

If you have plenty of time to read the entire 388 page document, it can be found at: http://cts.vresp.com/c/?SiegelFinancialGroup/15694b8fab/bd75198ec7/3562844d7d

This welcome change demonstrates the important government relations role the International Franchise Association ("IFA") plays in Washington D.C. The Government Relations Team of the IFA acted immediately when we alerted them that the SBA had enacted the goodwill financing restrictions last March, asking that the change immediately be rescinded. The IFA's Government Relations Team (including David French and Jason Straczewski, organized meetings on Capitol Hill and testimony before the House Small Business Committee, together with email and letter writing campaigns to our legislators. The entire Government Relations team acted as leaders for our industry, and should be commended.

However, this issue is only one of many facing us in Washington. Once again, I would like to personally encourage each and every one of you to register and attend the IFA Public Affairs Conference (formerly Franchise Appreciation Day) on September 14-15 in Washington DC.
Click on this link to get more information: http://cts.vresp.com/c/?SiegelFinancialGroup/15694b8fab/bd75198ec7/eaaa982279

This event brings each and every one of us face to face with our lawmakers so we can voice our concerns over issues that affect our livelihood. If we do not act, we will not get help. The record of this administration speaks for itself, as it allocated all of 1/8000th of the stimulus funds to help small business! Our agenda does not end with capital access, the new Health Care Agenda and Card Check can significantly impact all of us, and the future tax implications of all of this spending will reach into our pockets for years to come.

Please make arrangements to make sure that your company is represented. Better yet, come yourself! There is no registration fee for this event, and you will be doing your civic duty as an American! The entire Siegel team will be represented there, and we look forward to seeing you in Washington!

About Siegel Financial Group
Known nationally as an expert on issues of finance in the franchising and intermediary market for transactions up to $10 Million, the Siegel Financial Group of companies continues to provide cutting edge counsel to the industries that it services. Today we serve some of the biggest and most respected brands in franchising, setting the bar for customer service and “getting deals done”.For additional information about Siegel Financial Group or an update on how current economic conditions are affecting franchising, contact Ron Feldman at 610-668-9780.