Obama proposes raising SBA loan limits

Posted on October 22, 2009
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The Marine Retailers Association of America applauded President Obama's proposal Wednesday to raise the maximum size of SBA-backed loans to small businesses.

"Marine retailers have been hard hit by the recession. MRAA has assisted the SBA in setting up workable loan programs for the marine industry," said MRAA chairman Ed Lofgren. "We understand several dealers are in the final review process for the SBA floorplan financing loan guarantees. This announcement will only enhance the program and make it available to more small-sized dealers and hopefully help dealers get through these tough times."

Specifically, President Obama called for:

  • Increasing the size of SBA 7(a) loans used for dealer floorplan financing from $2 million to $5 million
  • Increasing the size of SBA 504 loans used for purchase or expansion of physical plants from $2 million to $5 million for standard borrowers (supporting a total project of $12.5 million) and from $4 million to $5 million for manufacturers (supporting a total project of $13.75 million)
  • Increasing the size of microloans from $35,000 to $50,000.

 

Click here for details on the new proposal.

Comments
23 December, 15 2009, 11:56 AM
By CFB
Once again I reply to this SBA program with a bit of disbelieve.  I ask any who would read this email to please try to find a bank ANYWHERE  that will work with this SBA loan.  I know no bank in my city,county or state will.  PS if you find a bank please let me know.
22 November, 06 2009, 12:16 PM
By CFB

Our dealership is in Virginia and we have not found any local banks that are willing to work with SBA loans.  As a matter fact SBA is telling us they do NOT know of a bank anywhere that is working with this program.  I don't know what  the Marine Retailers Assoc. is thinking but apparently they don't know what is going on.


 


 

21 October, 24 2009, 07:56 AM
By GW
Raising the limit is not the answer, the banks don't want to loan 2 million, why would they want to do 5 million?
20 October, 23 2009, 10:25 AM
By Jimmy
There are no banks out there that want to lend money to the marine industry. I have contact 6 diffrent banks from the biggest to the smallest. No one is interested at all with the SBA.
19 October, 23 2009, 08:11 AM
By Ed

Maybe I've missed some thing here. They are now raising the limits,


which will help the FEW, just as TARP did for the financial houses and


their CEOs.


What about the addressing lower limits of this plan? Did all of you out


there have a floor plan approved for $500,000. I sure didn't. Mine was


$125,000. I live in a small coastal community that cannot support a


$500,000 floorplan. Yet my neighbors would still like to buy boats and


motors if I could make them available to them. No matter what this plan


does it will not help the SMALL guy like me.


 

18 October, 22 2009, 09:06 PM
By Jim Daniel
Haved scoured Florida SBA offices and lending institutions that are listed by the SBA offices as participating lenders. Not one will participate in floor plan lending so far. Several have mentioned off the record that they do not trust the wording of the collateral/risk guarantee of the federal government. Don't look for a quick fix on this one.
17 October, 22 2009, 07:29 PM
By Ozone Watcher

I agree with Eric K.  Enlarge the size of government and add more regulation with more unelected ivy league pay czars.  Take the all money from all the top executives and put it into a fascist government system where we own all the assets and the government tells us how to run our businesses more effectively.  I'm game if guaranteed a salary and pay raises every year.


 


P. S.  I can't wait to get my 2010 boats with the new catalytic converters and watch my customers jump for joy with all their added benefits and cost.

16 October, 22 2009, 06:02 PM
By No fan of SBA

The SBA is a total and complete waste of time.

15 October, 22 2009, 02:17 PM
By Eric K.

Maybe we are going about this all wrong...  What if we all agree to not pay our top execs millions of dollars in bonuses this year, we just might be able to get ourselves a huge government bailout!


My customers sometimes treat me as a bank anyway.

14 October, 22 2009, 01:34 PM
By Curtis

Obama can raise all of the limits he wants to, but since there is not a bank in town or the COUNTRY that will do a flooring line for a dealer. It is like the others who responded to this, it is all a hoax to make the government look like they are doing something when the are not. All I know is at the next election anybody who is in office now, I will not be voting for no matter what. They have all let us, the American citizen down.


Have a nice day

13 October, 22 2009, 01:32 PM
By ex-capt.
Watch your paychecks/profits the PayCzar will be watchin' you when you get Government money.  Everywhere you turn nowdays keep it close to the vest.
12 October, 22 2009, 01:30 PM
By Steve S
I think I deal with one of the best banks in the US.  BB&T.  They have been a great bank in trying to work with us now in our 25th year of doing business.  When we ask them about Floorplan they gave the same response it seems as every other bank.  Do not do floorplan.  Can someone at the NMMA guide us to where we can go?
11 October, 22 2009, 12:57 PM
By Gary D

Find a bank that will lend to Marine Dealers and they will become swamped with applications. I have contacted several banks and none of them want to get involved with floorplans. It is another scam from our goverment to make it sound like they are doing something for the small business man. JOKE


 

10 October, 22 2009, 12:34 PM
By Lars
Where's the BEEF?  What is the point if none of the banks in your area or even state want to deal with the SBA!  If anyone knows of a SBA lender in MI please let me know.
9 October, 22 2009, 12:34 PM
By SL
If the word "floor plan" is used, banks pull away. The only way they will be interested in working with dealers on the SBA loan is if it could be applied as an open line of credit. Most banks don't want to go to the trouble of doing commodity checks. That was the loop hole in this whole deal that kept us from taking advantage of the program. Changing the size of the loan available to us won't help a bit. Note the wording above that "several dealers are in the final review process"..not one dealer in the country has been approved to my knowledge.
8 October, 22 2009, 12:20 PM
By Admiral Sandy
If anyone could please publish a list of banks that are doing floor planning, inventory financing or anything else you want to call it, please do so.  It is totally frustrating to meet with bankers, only to be told NO to us in the boat industry.  We in the industry help with jobs and the overall economy, but are not viewed that way by the banks.  The same banks that got 0% interest on OUR/TAXPAYER  money are not lending it back to us!
7 October, 22 2009, 12:17 PM
By Woodboat
Not one back in the State of RI is offering these loans so how does this help?
6 October, 22 2009, 12:14 PM
By Amy R

Great! So these marine businesses can find themselves in the same situations as homeowners with oversized loans found themselves in recent years.


Dealers are having problems selling their EXISTING inventory - how is buying more going to resolve the situation?


If the government would like to help, cut the excess taxation and stop penalizing small businesses for contributing to the economy.

5 October, 22 2009, 11:57 AM
By Jay Veach

Let me see if I understand this policy. Take the main stream dealer and have him put two to five million dollars of "new boat inventory"on a floor plan for product that has to compete against national liquidation houses, dealers that are selling dated inventory at cost or below cost (just to keep from having to carry this "dead" product another year), the internet discounters that have driven every ounce of possible profit from the market, and manufacturers who now are selling direct or buying back repo boats @ 30% of book value and auctioning them back into the market place.


Makes perfect sense if you are the NMMA.


Will the dealer who plans on bringing in two to five million dollars worth of fall and spring orders, please call me. I have a dealership that is available for a whole lot less and a bridge over the Hudson and a lot of land (only visible on a minus 4' tide).


Maybe when Obama finds out where the last trillion dollars that he burdened us went (try looking into the congress's offshore accounts BHO), and he distributes THAT money to the dealers...we can get back to being liquid enough to consider buying boats from our manufacturers.

4 October, 22 2009, 11:55 AM
By Jim Desai

Yep this is very good for all of us..


 


This will definately help to improve economy.


 


Jim


http://www.marlanindustries.com/

3 October, 22 2009, 11:45 AM
By LR
No bank that we can find will do sba floor plan for boat dealers. What a Joke!!!
2 October, 22 2009, 11:35 AM
By bwpt
I would think it would be more important to actually make these loans available to marine retailers.  I have yet to find a bank that participates in the floorplan financing.
1 October, 22 2009, 11:25 AM
By Chris Neal
Making it easier to raise capital is great, but the best thing that could be done is to CUT TAXES!

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