Hal Craig says he should’ve been in his third Momma Goldberg’s Deli franchise location by now, but the economy put those plans on hold.

With two thriving restaurants in Homewood and Inverness, Alabama, the economy—and discussions with the bank—has slowed growth plans for the local franchisees of the sandwich shop.

“When we opened the Inverness store five months ago, we thought within a few months we’d start looking for a third,” he said. “But we’ve decided to hold tight for a year so we can support a third with the first two restaurants,” a move heartily supported by the risk-averse banks.

Craig and his two franchisee partners are among good company when it comes to looking ahead to 2010 and the challenges it’ll bring for small businesses, particularly with limited capital available for growth.

A recent study from the International Franchise Association showed that a $3.4 billion shortfall in lending to franchise businesses in 2010 will result in 134,000 jobs not created and $13.9 billion in economic output lost.

While there’s sufficient capital available for franchise development in the coming year, the continued risk aversion of banks is limiting lending, said Matthew Shay, IFA president and CEO, in the study.

But, Shay said, with 60 percent of all U.S. jobs tied to small businesses, the federal government needs to enhance government-lending programs to shore up the $3.4 billion shortfall. On December 8 the IFA got an answer as President Barack Obama outlined a stimulus plan to assist the flow of credit to small businesses so they can hire more people.

IFA’s report said $1 million in franchise lending creates or protects about 40 jobs and generates $4.2 million in economic activity.

Express Oil Change, a Birmingham, Alabama, franchisor, has seen a drop-off in its growth plan in 2009 and Kent Feazell, senior vice president of real estate development, anticipates a similar year ahead.

“We opened 11 stores in 2008, and there was a drop-off in 2009 in getting stores open because of what people were reading in the newspaper,” said Feazell. “What we did a lot of in 2009 was set the stage for convincing and proving to existing and prospective franchisees that we are able to get financing and that we have strong relationships with regional lenders and the SBA side of financing.”

And that work has paid off, he said. Currently, Express Oil is working on 19 different projects, the majority of which will probably break ground in the coming year, but not all will open. Feazell said the company’s growth plan isn’t to open a store on every corner, but fill in growing markets it serves, opening 12 to 15 a year overall.

The company currently has 170 corporate- and franchise-owned stores and recently opened a new one in Bessemer, its 34th in the Birmingham area.

Momma Goldberg’s Craig said with a tight budget for advertising in the coming year, the restaurant plans to beef up its presence on social-media sites like Twitter and Facebook, an area where it’s already seeing tangible results from daily and weekly promotions going out to hundreds of fans.

“We’ve gotten some feedback from people saying they check it every day,” he said. “And even if they don’t check the sites, it’s often word of mouth from those that do.”

Networking with weekly groups and at area events also will prove successful in 2010, said Craig. That gets Momma Goldberg’s out in front of a corporate crowd, and it already has increased catering business twentyfold, he said.

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Lauren B. Cooper is a staff writer for the Birmingham Business Journal.