April 5, 2010, 8:00 a.m. EDT · Recommend · Post:
The Bancorp Bank Announces Strategic Alliance with Franchise America Finance(TM) to Create a National SBA Guaranteed Lending Program for Franchisees
WILMINGTON, Del., Apr 05, 2010 (BUSINESS WIRE) -- The Bancorp Bank ("Bancorp"), a wholly owned subsidiary of The Bancorp, Inc. /quotes/comstock/15*!tbbk/quotes/nls/tbbk (TBBK 9.12, +0.01, +0.11%) , today announced a strategic alliance with Franchise America Finance(TM) to create and implement a national SBA guaranteed lending program for start-up and expanding franchise businesses. Bancorp will make funding available to new and existing franchisees who meet predetermined standards set by Bancorp. The program will be limited to approximately 30 franchise systems with measured performance and experience within their operations. Bancorp expects to create a significant SBA lending program through this strategic alliance.
Diane Gallion, Senior Vice President of The Bancorp Bank, who recently joined the Bancorp to establish Bancorp's Government Guaranteed Lending Program said, "The Bancorp Bank is very excited to enter the national franchise lending arena. We are focused on lending to only the best of the best in franchising, while helping the economy by stimulating job creation through a proven business model." Diane brings more than 30 years of SBA and Banking expertise to Bancorp and actively participates in The National Association for Government Guaranteed Lenders (NAGGL) as a National Instructor.
"This program is the first of its kind, providing a collaborative effort between lender and franchisor to set up a predictable model for franchise financing," said Ronald Feldman, CEO of Franchise America Finance(TM). "Franchise America Finance(TM) has been designed with the best practices in franchise development, SBA lending, and franchisee selection."
Matthew Shay, President and CEO of the International Franchise Association (IFA) said, "It is lending programs like this that can help move the country towards economic recovery. The IFA study on capital access shows that for every $1 million of lending into the franchise business model, 34 sustainable jobs are created. Innovative ventures such as Franchise America Finance will help franchise businesses grow and create millions of jobs and greatly contribute to the country's economic health."
Darrell Johnson, President of FRANdata said, "Capital access has become the number one issue in franchising, impacting new unit growth, ownership transfers, and even unit renovations. FRANdata has identified a recent trend in loan decision-making where franchisor and franchise system performance matter more. Bancorp's disciplined approach that considers details about brand performance is further evidence that better performing brands are being rewarded."
For further information regarding The Bancorp Bank's national franchise lending program please contact Diane Gallion at email@example.com.
About Franchise America Finance(TM)
Franchise America Finance ("FAF") was formed by a group of franchising professionals to address the void in the capital markets for franchising. FAF's services are in addition to the core franchise finance services that are performed by Siegel Financial Group(TM). FAF can provide senior and subordinated debt, mezzanine financing and place equity for franchisors and franchisees.
The Bancorp Bank, a wholly owned subsidiary of The Bancorp, Inc. /quotes/comstock/15*!tbbk/quotes/nls/tbbk (TBBK 9.12, +0.01, +0.11%) is an FDIC-insured commercial bank that delivers a full array of financial services and products both directly and through private-label affinity programs nationwide. The Bancorp Bank's regional community bank division serves the needs of small and mid-size businesses and their principals in the Philadelphia-Wilmington region.
SOURCE: The Bancorp Bank