GE Capital's franchise finance arm is becoming more stringent in pricing and issuing loans for new franchisees, a pullback by one of the largest lenders to restaurant operators in the latest sign that Wall Street's turmoil is spreading to small businesses."We are still active in the restaurant industry and we continue to quote deals where it's competitive and appropriate," White said. "In this environment, we're taking a longer look and even a closer look than we have in different times and that just makes sense." Stephen Vaughan, chief financial officer of Sonic Corp. (SONC), told Dow Jones Newswires Thursday that he had heard that GE Capital's franchise finance arm will temporarily stop financing new loans to franchisees. GE Capital is one of Sonic's approved lenders.
Certainly" don't cry for me" that there won't be more Sonic restaurants. My point is it's spreading beyond Lehman brothers and Goldman Sachs.
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