SBA dealer financing program begins

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A new dealer floorplan pilot program created by the Small Business Administration is now under way.

As of July 1, boat, auto and RV dealers can apply for SBA-guaranteed floorplan financing so they can borrow against inventory and increase their cash flow. The program will run through Sept. 30, 2010.

DFP loans will be available for a minimum of $500,000 up to $2 million under the SBA 7 (a) loan program. With a maximum repayment term of five years, the loans will come with a 60 to 75 percent government guarantee. Borrowers will also benefit from the temporary elimination of fees made possible by the American Recovery and Reinvestment Act.

Click here for information.

Click here for the full Marine Retailers Association of America release.

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Comments

5 comments on “SBA dealer financing program begins

  1. Melody

    The SBA sounds like a good program but out of the 4-5 banks we’ve contacted (Bank of America, Wachovia, etc) none of them are participating w/ the SBA program. 
    The MIASF is working on getting a list of banks together that are processing the SBA loans – hopefully they will find some. 
    Melody, Seven Seas Yacht Sales

  2. Carl

    As I understand it, the problem isn’t the limit as much as:
         1) finding a lender that works with SBA and is set up to do floor plan financing
         2) all interest, fees, and curtailments must be paid and current with the present lender
         3) last year (s) financial statements must show a profit

    GE also doesn’t participate either.

    So I’ld like to know of any boat dealer who has qualified & is flooring on this program. Please just 1??? 

  3. Jim Sheehan

    So far this appears to be nothing but an Obama feel good smokescreen.  We have yet to find a bank willing to do this.  They all say there’s no money in it for the lender.  We’ve even asked GE; but our rep said why would GE do that when they’re already charging a higher interest . 

  4. RedHornet

    The banks offering this lower interest financing through the SBA will be limited and must be approved by the SBA for the program. Not very many banks will be able to offer this program.
     

  5. Scott

    Your hitting the nail right on the head.  Sure the loans now qualify but good luck finding an SBA Lender anxious to jump into the floor plan finance business.  All of the articles leading up to this made it sound like a nice solution.  Whoever was writing them should have done a little more research as to how SBA lending works before printing all the “good news.”

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