As a way to promote his small business agenda, President Obama visited the Tastee Sub Shop in Edison, New Jersey on July 28th, ordered half a #5 Super Sub to go, and talked business with Sub Shop co-owner Dave Thornton; Brian Bovio, owner of a family energy business; Rochelle Park restaurant owner Theo Mastorakos; and Tom and Catherine Horsburgh, owners of Ridgid Paper Tube Corporation in Wayne. President Obama is campaigning for passage of legislation that would provide $30 billion to community banks, allowing them to lend money to small businesses. The independently owned Tastee Sub Shop was founded in 1963, and is presumably well financed. But according to the International Franchise Association, the franchise industry is expected to seek $10.1 billion in capital, while banks are expected to lend only $6.7 billion, leaving franchisers such as Marco’s Pizza to fill the financing gap, if they want to expand in an environment of tight bank credit.
