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Joyce Mazero Warns No Guarantees in Small Business Jobs Act
12/06/2010

Small Business Jobs Act Aims to Free Up Funds for Small Businesses 
Nation's Restaurant News

When President Barack Obama signed the Small Business Jobs Act into law in September, many franchisors and franchisees, industry lobbyists, lawyers and consultants heralded the new law as the end of the credit freeze and the start of tax relief. Other experts said the law will help only well-established franchisors and franchisees who are already successful, and only for a short time.

Among the most widely watched provisions of the new law were the creation of a Small Business Lending Fund, an increase in Small Business Administration loan limits and the continued elimination of loan fees.

Joyce Mazero, partner at the law firm Haynes and Boone LLP in Dallas, said franchisors have ramped up their franchise sales, but some see a downside to the new law.

"Franchisors are leery that the benefits are another bailout and will ultimately increase the tax burden for everyone because there is no assurance the money being made available to small businesses and lenders will be used appropriately to hire more people, even where the franchisor has a direct relationship with the beneficiary of the changes," she said.

Mazero added that, in addition to the new law, other factors will affect franchise expansion. "Franchisors believe the consumer has to regain confidence in small business [to] spend money."

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