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Jon Luther and Steve Caldeira of the International Franchise Association weighs in on small business and jobs.
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Thank you.
Well -- problems for -- to have big problems for small business international franchise association says things will only get worse.
The president Obama's tax plans go into effect to the end of this year and they just told the president has much.
Joining me now -- chairman John Luther and then present CSC called Sarah and John thanks for being here but the view is you don't wanna start with you on something here.
You wrote a letter to the president here's what you said.
Quote unquote under your proposal would tax us for many if I -- members of the dramatically increased.
More than 80% of IA phase members father taxes -- LLC is partnerships as -- -- partnerships to the president respond to your concern.
No -- he didn't and first and foremost thanks for having a sign.
You know again 80% of our members -- escorts -- We're scheduled to grow this year about between one and a half to 2% in terms of jobs and establishments.
But we can be growing a much quicker we had uncertainty around future tax rates that are set to expire -- this year.
So it's been a very difficult and challenging environment for us which is why we have -- and fifty small business owners here in Washington.
This week to storm Capitol Hill tomorrow to try to.
You know put a sense of urgency.
To what our industry is going through okay -- investor is keeping investors on the sidelines.
OK I don't let me go to you -- because I was looking at some data from the and a fight B and basically.
Zero jobs created in the month of August small business jobs zero but never -- and what they're saying here is that small businesses will not expand.
Before the election.
A big piece of the small business pie is the franchises that you used to run -- Duncan and that you now oversee.
With the what the -- organization now what do you say to those owners and what is the -- Well it's it's an -- dilemma that we have we have lots of Ernest.
Intent from our franchise community want to continue growing create jobs in this country.
And the sitting on the sidelines because of a number of things that are affecting in the tax thing that Steve mentioned is one.
But the uncertainty over all of what's in -- of us.
Is causing people hesitate weight because before they invest their personal money and continue to grow and and build that American dream their franchising provides.
They can't do it with uncertainty it's just not worth the risk still don't need to have more more certainty.
I so these folks can.
Expand and and add jobs to our economy.
-- understood you know Steve I was looking at the numbers the volume the value of small business loans if you look at the date.
Actually is the best value that we've seen Ford as long as the best long we've seen since 2007 so -- are being given the small businesses loans are being given to franchisers.
-- they've been that concerned about taxes -- they -- that they got money in hand expand.
Well credit access has improved but we still have a one point eight billion dollar lending shortfall.
To meet there a forecasted demand and if we can meet that forecast to demand that means we could create nearly a 100000.
New jobs in America today so credit access remains a problem and you don't impending cost of health care.
And the NLRB NLRB's sidestepping.
Congress on workforce policy.
And you ask yourself how much -- the small business community take.
When we're dealing with eight point 1% unemployment and while that number went that's because 360000.
Folks dropped out of the workforce.
So you get 23 million people.
Unemployed underemployed.
Working part time are given up looking for.
So you put all this in the -- aggregate and that's not a prescription for growth Carol.
You know -- tell you what John I mean land -- being a -- bases we -- very long -- economists have identified -- he made it very at this surprising to come from him he said.
That all of and -- the data that we're saying -- -- again the president's chances.
Of reelection John you've been at this for a long time what do you say.
Leisure AG -- shareholders and yeah I think I think.
It does create.
It a -- unfortunate position for our sitting president.
But.
Putting a bipartisan had not it's really about the small business person who wants -- -- create jobs.
-- I remind everybody of all of our great Duncan franchisees and is 2700 album.
They each employee 25 to thirty people.
And they have commitments to build another 152000.
Stores over the next seven to ten years.
Those are all jobs and they sit in the they.
They wait and our friends over -- -- -- -- with armies have the same situation on hand before they.
Investor -- money and go to the banks and yes Karen mills in the SBA.
Have been much better in the lending environment.
But -- Steve pointed out -- still shortfall but it's more than that it's the uncertainty that causes them to hold off.
And that's -- we worry about the most because -- the American dream is to own your own business and and create growth and and when they can't do it is just the facts and the city president -- -- he's got to look at that as as an opportunity for vote perhaps the.
Well wall said John -- -- -- Caldera thanks to both into one point eight jobs in this country are franchised jobs element.
