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February 4, 2025

Federal Government Reopens

On Tuesday, President Trump reopened the Federal government by signing the consolidated appropriations bill necessary to ending the partial government shutdown that began on Saturday, Jan. 31.

Dig Deeper: Relevant to franchising, the enacted spending bill funds agencies including the Small Business Administration, Department of Labor, National Labor Relations Board, and Federal Trade Commission through the end of the federal fiscal year on Sept. 30, 2026.

What’s Next: The spending package only funds the Department of Homeland Security for two weeks while members of Congress negotiate law enforcement reforms following recent incidents surrounding the U.S. Immigration and Customs Enforcement.

SBA Restricts Loan Programs for Non-Citizens

On Monday, Feb. 2, the Small Business Administration (SBA) announced that beginning March 1, 2026, businesses owned in whole or in part by Legal Permanent Residents, or green card holders, will be ineligible for the agency’s loan programs.

Dive Deeper: This SBA change will apply to new loan applications submitted after the March 1 effective date. 

Why This Matters: IFA is closely monitoring this Standard Operating Procedure change because SBA loans are a critical source of capital for franchise businesses. According to FRANdata, nearly 21% of total SBA 7(a) loan dollars and 14% of total 504 loan dollars were issued to franchisees.

Endorsements Roll In for American Franchise Act

IFA’s top legislative priority this year, the American Franchise Act, has received continued support from members of Congress and important stakeholder groups in recent months.

Dig Deeper: Just in the past week, the U.S. House Problem Solvers Caucus – a group of 45 Members of Congress split between Republicans and Democrats committed to advancing common-sense solutions – endorsed the AFA on Monday, Feb. 2. Further, American Compass, a center-right organization that provides economic thought leadership within the Trump White House, produced a policy paper on the Joint Employer Standard that endorsed the AFA on Friday, Jan. 30.

Why It Matters: These endorsements further validate the brand-new AFA as a commonsense, bipartisan approach to enshrining protection for the next generation of franchise entrepreneurs.

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Maryland Lawmakers Introduce Franchise Registration Bill

Maryland Sen. Pamela Beidle introduced SB 415 last week, focusing on updating Maryland's Franchise Registration and Disclosure Law by allowing additional time for regulatory review of franchise sales and codifying the state's recently piloted fast-track registration and renewal program. Del. Marc Korman cross-filed HB 730 in the House. 

Dig Deeper: The bill is modeled after last session's HB992. SB 415 has been referred to the Senate Finance Committee, and HB 730 is scheduled for a hearing before the House Economic Matters Committee on Feb. 25. 

What’s Next: IFA is engaged with Sen. Beidle and Del. Korman and will continue working with policymakers throughout the legislative process.