Boat dealers eligible for floorplan loans through SBA

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A new program from the Small Business Administration will offer floorplan financing with government-guaranteed loans for eligible boat, auto and recreational vehicle dealers.

“By filling a gap in the credit markets that has existed since at least last September, this new SBA program will allow dealers and manufacturers to plan over a longer term and, in doing so, sell more, make more and create more jobs,” stated U.S. Rep. Joe Donnelly, the Indiana Democrat who was instrumental in creating the program.

Beginning July 1, SBA Dealer Floor Plan loans will come with a 75 percent government guarantee and a maximum repayment term of five years. DFP loans will be available for a minimum of $500,000 up to the $2 million allowable under the 7(a) program. The loans will be made only for titleable inventory such as boats or boat trailers.

“The availability of floorplan loans through this SBA program will provide marine dealers with a potential source of financing urgently needed by many, and stimulate orders to manufacturers who will build and ship new product,” said Thom Dammrich, president of the National Marine Manufacturers Association, in a statement.

He said the initiative was a collaborative effort between the SBA, Congress, the NMMA, the National Marine Bankers Association, the Marine Retailers Association of American and the Recreational Vehicle Industry Association.

To be eligible for a DFP loan, dealers must be a small business with total annual receipts under $7 million or a tangible net worth not in excess of $8.5 million and an average net income after federal income taxes for the preceding two complete fiscal years not in excess of $3 million.

Interested dealers can apply to one of the 1,200 financial institution approved to make SBA 7(a) loans.

To learn more about the pilot program, download SBA’s fact sheet and frequently asked questions. Click here to view a list of SBA-approved 7(a) lenders.

For information, contact SBA at (800) 8-ASK-SBA or contact the NMMA’s Cindy Squires at (202) 737-9766 or csquires@nmma.org.

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Comments

8 comments on “Boat dealers eligible for floorplan loans through SBA

  1. Susan

    I clicked the link (for list of SBA-approved 7(a) lenders. But am having trouble finding that list. Lots of other info, but no list. Can you point me in the right direction? Or give a better link?

  2. BethR

    If you go to the link for the SBA-approved lenders you will see a map. From there, click on your state and it will lead you to a list of lenders and information about your local SBA office.
     
    Beth Rosenberg

  3. Cindy

    I click on my state of DE and only get the SBA office don;t see the approved lenders list.

  4. BethR

    For Delaware, for example, you click on Delaware, and then under “Spotlight” scroll down until you see a link for lenders and program activities – there is the list of Del. lenders…
    Beth Rosenberg

  5. Curtis

    I have found many SBA lenders are not going to be acepting applications for inventory even with SBA guarantee. They say it is to risky and they will not make any money because of the time it will take them to do floor checks and maintain the account. At least that is what I have found out  in the Seattle/Tacoma area of Washington. I am still searching.
     

  6. Mwalexis

    So far our Company has called 10 of the listed banks for Florida, the numbers either do not accept incoming calls, are disconnected or are the wrong number!!  Hmmmm

  7. JOE

    I have talke to the head person here in Alabama and he has told me NO BANK  here will even sign up for this ..  SO he tell s me dont get my hopes up, as he sees it … it will never come to age..
     
     
    UNTIL THEN WE WILL HAVE TO TAKE OUR BEATING FROM THE 2 SOURCES STILL THERE AND MAKING US PAY UN-REAL INTRESTS RATES AND DOING FLOOR CHECKS UP TOO 4 A MONTH .. UNREAL  AT THIS MOENT WHAT THEY ARE DOING

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