Rallying a Franchise Team to Save the American Dream
Small business owners are innovators, often looking at new ways to solve old problems. As such, it takes innovative thinking to help them reach their goals. In 2017, Lendio set out to do just that with a first-of-its-kind marketplace lending franchise program called Lendio Local. The concept was simple: take Lendio’s powerful loan marketplace technology and supercharge it with personal representatives that could find and form powerful connections with local business owners, face to face.
We haven’t looked back since. Since its inception, Lendio Local has grown to more than 75 locations.
The secret to our success? First-hand experience.
Small business owners are always up against the odds: bigger competition, a lack of resources and a shortage of time, to name a few. Despite their many contingency plans, it’s safe to say few business owners saw a catastrophe like the COVID-19 pandemic hitting.
When March 2020 rolled around, the sentiment was grim: concern for livelihoods and lives loomed as traditional business lending came to a standstill. With bated breath, we all wondered what would come next.
Our Lendio Local franchisees perhaps felt it the most; besides being essential members of our team, they’re also small business owners themselves. As such, they could see the whole picture. We think that gave our program a significant edge: these franchisees not only knew the business inside and out, but they were in it day to day. We knew they would be pivotal in helping us steer the ship safely through the storm.
So when the Paycheck Protection Program (PPP) was introduced, we rallied.
Adjusting to any new law or regulation takes preparation and time, but when the PPP was introduced, there wasn’t a second to lose. We knew this program would be a lifeline to thousands of small business owners who had everything on the line. We quickly deployed and began to channel some inquiries through the franchisees in the local markets directly. This approach provided a more personal touch during this time of crisis. The decision to launch locally first also provided some breathing room for our corporate team to get its arms around what lay ahead.
Saving the American dream for us and for our customers.
During times of crisis, accessibility, clear and frequent communication, and a steadying hand rule the day. We took those principles to heart. As the coronavirus swept across the country, our local agents lept into action, providing direct support to the local community. They did this through personal consultations via video conferencing and walking applicants through every step of the PPP and its ever-changing guidelines and rules. Instead of fueling the American Dream, we set out to save it.
Not only did this pivot immediately preserve the livelihood of 38 Lendio franchisees, it also saved over 7,000 small businesses from having to close permanently and lay off employees. In the 2020 rounds of PPP, Lendio Local franchisees helped over 7,000 business owners receive nearly $435 million in loan approvals. By lending resources, support and empowerment to our franchisees and customers, Lendio as a whole has facilitated more than $9 billion in relief loans to date. As many industries continued to struggle and adapt, Lendio found its franchise program growing, and we quickly mobilized to onboard new team members and fill developing roles.
The stories speak for themselves.
In Kansas City, Isaac Collins, owner of Yogurtini was fearful for his frozen yogurt shop’s survival. After applying for a Paycheck Protection Program loan with his main bank and hearing nothing, Collins decided to reach out to Lendio Local franchisee, Wendy Eaton. Wendy was able to walk him through the application process, and within an hour, the applications had been submitted. They continued to remain in contact until the loans were funded. Six weeks after applying with his bank, he still hadn’t heard anything.
“My PPP experience with Lendio was a literal blessing,” said Collins. “I don’t know if we could have made it through COVID-19 and the shutdowns without the PPP money.”
This is the impact our local reps have on their communities. Not only are they making a living for themselves, but they are also directly impacting the livelihoods of their friends and neighbors.
The lessons learned? Many. The reward? Hard-earned.
During an unbelievably tumultuous and trying year, Lendio was proud to be acknowledged for the fourth year in a row on Entrepreneur’s Franchise 500® list for its outstanding performance in areas including unit growth, financial strength, stability and brand power. Thankfully, we didn’t lose a single franchise location because of the tumult in 2020.
For all of us, the pandemic brought about many opportunities to learn.
We pushed the boundaries of corporate adaptation to change; we tested our employees’ willingness to make a completely new sales strategy operational in record time. As many companies and industries struggled, our focus on clear communication and real relationships led us through this trying time and elevated the experience we could offer. We found a way to thrive, and as such, many of our small business customers are too.
Although the pandemic is seemingly waning, the long-term effects still loom. History has proven that once we’ve made it through one crisis, another lays ahead. Like Lendio and its franchise organization, all small businesses will need to retain the resiliency they’ve learned in order to face what the future holds. We’ll take those challenges head-on, and together.
