Senators ask SBA to extend floorplan program

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Two U.S. senators have sent a letter to the Small Business Administration encouraging the agency to extend the dealer floorplan pilot program from one year to three years, the National Marine Manufacturers Association reports.

The letter, sent by Sen. Mary Landrieu, D-La., and Sen. Olympia Snowe, R-Maine, also asks the SBA to increase its outreach to the lending community to spur lender participation and eliminate the restriction on “less experienced floorplan lenders” in order to broaden the program’s reach.

Click here to read the letter.

Comments

19 comments on “Senators ask SBA to extend floorplan program

  1. Thom Dammrich

    This is not just two Senators.  This is the Chairman and Ranking Member of the Senate Committee on Small Business and Entrepreneurship which oversees the SBA.

  2. fishdaddy 1

    Well is’nt that nice….too bad I do not know of ANY dealer that has gotten 1 red cent to to this day off the  original program…has any one out there gotten of this money or any know of anyone know of someone that has???
    Big Goverenment is the BEST!!! Thanks for nothing (But heartache and butt rash)….

  3. Sandy

    Please publish who in the Boating Industry has obtained any SBA Floor Planning!!!  Perhaps we live in a different world in Fort Lauderdale, known as the Venis of America.  I have not heard of one dealer who has been successful in obtaining any funds from any bank!!! 

  4. Jim Schofield

    I don’t care if it’s Barry himself…the fact of the matter is, the program hasn’t worked!

  5. Dealer Principal

    I too know of no one who has gotten a dime in SBA floorplanning. Every time I ask a bank about it they just laugh at me. No one wants anything to do with it. Too much paperwork and red tape, and OH! we are not lending money for much of anything anyway. Here’s your “CHANGE” America.

  6. wakepro

    Does not matter if its 20 Senators.
    THE BANKS WILL NOT LOAN ANY MONEY TO MARINE DEALERS. PERIOD.

  7. Fletcher Ryan

    Tom,
    Without mentioning specific dealers, do you know if anyone has benefited from the program?

  8. Butch

    I just qualified and received funding, but started in July. The process takes way to long and thanks to a great bank that stuck with it we made it. It don’t pay to extend the program if your not going to fix the qualifing.

  9. BethR

    In November, Trade Only reported that Cleveland Boat Center in Tenn. had received funding through the program. I do not know the specific names of any other dealerships that have received funding through the program, though I’ve heard another few have.
    Beth Rosenberg, Trade Only

  10. GND

    I spoke directly to the SBA and they informed me that there has been 2 marine dealers and 2 rv dealers to date, as of a few weeks ago, that have actually received any funding. Biggest joke of the decade in my opinion.

  11. Capt Brett

    This is all smoke and mirrors from your fantastic big Govt hard at work for you. 
    Don’t count on the SBA for anything.  It’s all fluff.
    I worked with 4 different banks so far and every one said thay can’t get floorplan funds from the SBA for a boat dealer.   Too much red tape and far too difficult to qualify.   
    Forget the SBA and focus on finding a bank that is willing to start a floorplan program.  Don’t count on this administration doing anything to help the boat dealers or the recreational boating industry.  We are just a bunch of polluters in their eyes.  
    Now go buy a VOLT to get you to and from your work and take a walk in the park that your city government provided for you.  
    Thanks for the change……  

  12. GND

    It seems this problem could be solved rather easy if the Senators from each State that has boat and rv manufactureing in it, about a third of the states, approached the SBA as a group the problem could be solved over night. The manufacture’s can’t sell product if there isn’t any flooring to buy it. The job creation on that level is monumental. The NMMA and the MRAA will not and can not accomplish anything on there own. They won’t step on any toes, and they are not force full enough to accomplish anything. That has been the history of both organizations. The NMMA to fill their own coifers and the MRAA to dance around any isues that are controversial. Both industies are in dire straights and will remain so for at least the next four years. Several manufacureres had dealer meetings in the past many months and all of them went over well. The big problem was dealers wanted product but had no flooring to buy it.

  13. charles

    Well here we go again.  Like everyone else why doesn’t Trade Only just find one dealer who has found any lending institution who is willing to work with the SBA.  This is a prime example of how out of touch our politicians are.  Just think these are the people who want to manage our health care.  That is very scary.

  14. Catherine

    Our President recently told the American public not to buy a boat, they can’t afford it – along with not going to Vegas.  And how many deals did I lose last summer with cash for clunkers (financed by the Chinese) (I sold ZERO boats last August) and how many people put new windows in instead of buying a boat?  Thanks, but I’ll pass on government involvement in our business. 
    And if cap and tax goes thru, what will be the surcharge to operate a non essential gas motor?
    Until we take a very bitter but necessary correction, any economic recovery is only smoke and mirrors.

  15. Curtis

    What is the point of the SBA when the banks just say they are not on the program. We gave the bank billions of dollars to bail them out and pay the executive millions in pay and bonuses but they will not help any body.
    So far I have been turned down by US Bank and Key bank, they would not even take a credit application. US Bank is suppost to be the #1 SBA lender and I bank there and they just say we are not on the program. Wells Fargo and a local bank at least looked at me but not as an SBA program but said the cash flow was low in 2008 (no kidding) even though we made money in 05,06,07 and 09. They said the SBA programs are to complex and not profitable for them. They were trying to see if they could just do a loan using my property as collertal but then they say they are not collertal lenders. I don’t get it. 
    If the banks are an SBA lenders then they should have to look at all of the programs, not just pick and choose.
    Have a nice day

  16. Komrade Karl

    If dealer floor planning was a money making business not only would banks be in it but private equity companies would be forming long lines to take this money off the street. Obviously it must not be profitable even at 10-12%.
    Wake up ! It’s more important to get retail financing going than wholesale… 2 years ago Dealers had all the floor plan they were willing to sign on to and used it to buy inventory they couldn’t find buyers for.
    That must have been someone fault also…

  17. Fred Glass

    Without wholesale floorplanning, how are the manufacturers going to build & sell boats during the fall and winter?
    Are there any dealers out there planning to order 2011 models for delivery during the fall and winter of 2010/2011?
    It appears that most of the boats that are being manufactured right now are pre-sold to customers planning to use them this spring & summer.  How many consumers are going to be in the market for a newly manufactured boat come August?  October?  January?

  18. Chris Lyons

    Come on folks! Everyone is still waiting for the banking system to help them. It’s not going to happen. Like I said before we as an industry needs to take control of our own future and start an industry Credit Union. Other industreis has done this why not the marine business. Credit unions has access to every product that the traditional banks has. We as a Marine Industry Federal Credit Union Committee came close but becuse of lack of funding ($25K) it died.
    Can’t say we didn’t try!!!
    Chris Lyons
    yachtmoneyman@yahoo.com

  19. Fiesta Carl

    Fred I understand your concern but seriously isn’t it the builders issue what they do in the fall & early winter not the dealer? They are the ones that need to decide if they can afford to be in this business-year round- as do the dealers to be dealers. Finally today dealers are carring what they know they can afford & sell at a PROFIT. Floor plan is just the “needle” that keeps dealers addicted to OPM
    Other Peoples Money…..
    It’s a tough reality, that is not taught at todays hottie tottie business schools but it is reality.
    I believe, you will start to see more regional manufacturer show rooms (ala Regal) to support the dealers in that region on larger ticket boats (over $40k). Or more company retail supported outlets (ala Bass Pro, cabella’s, Gander mt.) the only other choice is to become like the European market- eliminate model year &  the ridicules hysteria  that goes with it.

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